Despite the fact that EURUSD failed to drop from the top of the range at 1.1090, the fundamental direction does not necessarily changed.Dollar may be facing some weaker economic data recently but euro is just…weak!Unless price shoots up and break beyond 1.1170, we will only look to sell at a higher price.
EURUSD D1: Price approaching the top of 18-month falling channel for retest
So, ADP has turned out much weaker than expected but I would suggest to leave that aside and focus on the upcoming actual NFP data.If the actual data stays within the range of the previous and consensus, or higher than the consensus, EURUSD most likely will resume downtrend.
EURUSD H4: Harmonic pattern completing at supply zone 1.1120
As seen in the chart, a harmonic pattern is forming and there’s a strong supply zone at 1.1120.For trading, you may consider to set sell limit around 1.1120, SL should be at least 1.1140.Otherwise, just wait for the data to be released and observe for a higher price to sell.If the data turned out as weak as the ADP, there might be a strong upward spike which may create a fake break of the top of the falling channel.