EUR/USD has run stops below 1.3210 and below 1.3190 as well, slumping all the way to 1.3180 thus far. The improved ISM has dealers discounting the earlier ADP weakness owing to the fact that the report is not seasonally adjusted, a fact that was not widely known before today's release. 1.3220 should cap rebounds near-term while Fibo support at 1.3170 should give aid and comfort to EUR bulls.
That level is the 61.8% retracement of the post-Christmas 1.3085/1.3295 range. EUR/USD trades heavy despite forecasts for the ECB to accelerate their tightening cycle by moving in February rather than March in the wake f the strong German employment data today.
Markets are oversold intraday, suggesting a period of 1.3170/1.3220 range-trade ahead while the market awaits the FOMC minutes. EUR bulls are unlikely to get much support for their positions from the Fed, however, with inflation still a concern according to most Fed commentary.
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