The EUR/USD unexpectedly turned bearish yesterday, as the combination of the pair hitting a key resistance level and positive US manufacturing data caused investors to short their positions. In addition, the euro has extended its losses against the safe-haven Swiss franc. The EUR/CHF has dropped close to 100 pips since yesterday afternoon, and is currently trading around the 1.2770 level.
While no significant euro-zone data is scheduled to be released today, traders will want to pay close attention to the US ADP Non-Farm Employment Change figure. If the figure comes in at 178K as expected, investors are likely to go long in their EUR/USD positions. At the same time, the ADP figure is notoriously hard to predict. A better than forecasted figure may cause the euro to drop further against the dollar.