EUR/USD plunged in the last 20 minutes as the Dollar Index rallied after the ISM Services PMI data. The economic indicator was reported unexpectedly higher, at 64.1 in July versus 60.5 expected and versus 60.1 in June.
Moreover, the Final Services PMI increased from 59.8 to 59.9 points. Later on in the trading day, EUR/USD rallied in light of the US ADP Non-Farm Employment Change as the indicator was reported at 330K far below the 695K estimate. The pair has erased today's gains and now is challenging a support area.
EUR/USD Sell-Off!
EUR/USD has increased as much as the 1.1899 level and now is trading at 1.1844 above 1.1836 today's low. It has failed to come back above the 1.19 psychological level and now is testing the weekly pivot point (1.1846).
Closing and stabilizing below the pivot point could signal a deeper drop. Technically, it remains to see where the current H4 candle will close. A false breakdown with great separation through the pivot point (1.1846) could signal that EUR/USD could still climb.
Outlook!
1.1841 - 1.1824 area is seen as a support zone. EUR/USD could rise further as long as it stays above it. The immediate major target is seen at the upper median line (UML). A temporary consolidation here could bring a new upside movement and a new long opportunity.
Dropping and closing below 1.1824 signal a further decline towards the S1 (1.1784).
