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EUR/USD testing the 1.12 support

FXStreet (Edinburgh) - The shared currency remains entrenched in the negative territory on Wednesday, sending EUR/USD to challenge the critical support at 1.1200.

EUR/USD attention to ADP, Yellen

Spot keeps correcting lower from daily tops in the 1.1260 area against a backdrop of renewed buying interest around the dollar. In addition, tepid results in the euro area have added further downside pressure to the pair today, as consumer prices came in softer than expected and the unemployment rate has ticked higher to 11.0% during August.

Ahead in the day, the ADP employment report and the subsequent speech by Chief J.Yellen will take centre stage. Prior surveys see the US private sector extending the solid momentum and adding 195K jobs during September vs. August’s 190K.

EUR/USD levels to watch

As of writing the pair is losing 0.33% at 1.1210 and a breakdown of 1.1194 (low Sep.29) would aim for 1.1146 (low Sep.28) and then 1.1105 (low Sep.23). On the other hand, the initial resistance aligns at 1.1281 (high Sep.29) followed by 1.1296 (high Sep.24) and finally 1.1330 (high Sep.21).

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