• The Euro remains depressed below 1.1500 amid the dismal market mood.
• German and Eurozone services activity accelerated beyond expectations in October.
• The US ADP Employment report is forecast to add to evidence of a stalled labour market.

EUR/USD consolidates losses below the 1.1500 level on Wednesday's early European session, trading near 1.1485 at the time of writing. A risk-averse sentiment, amid sharp sell-offs in equities around the world, is underpinning demand for the safe-haven US Dollar, and the upbeat Eurozone services data has failed to improve market mood.

Data from the Eurozone and the German HCOB Services Purchasing Managers' Index (PMI) revealed that the sector's activity accelerated beyond expectations in both countries, although the impact on the Euro has been muted. Somewhat later, the Eurozone's Producer Price Index (PPI) is forecast to highlight ongoing deflationary trends.

In the US, the government shutdown has extended for its fifth week, on track to become the longest in the record. This gives particular relevance to the ADP Employment report, due later in the day, and the ISM Services Purchasing Managers' Index (PMI), both of which are likely to show mild rebounds after September's downbeat figures.
 

Euro Price Today

The table below shows the percentage change of Euro (EUR) against listed major currencies today. Euro was the strongest against the Canadian Dollar.

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Euro from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent EUR (base)/USD (quote).
 

Daily digest market movers: Risk aversion buoys the US Dollar

• The US Dollar remains bid as investors rush for safety, with equities across the globe selling off while they ponder the chances of further Fed monetary easing in the December meeting, amid hawkish comments from Fed Chairman Jerome Powell and diverging views from the central bank's policymakers.
• The final Eurozone HCOB Services PMI increased to 53.0 in October, up from the previous month's 51.3 reading, surpassing the preliminary estimate of 52.6.
• Somewhat earlier, the German HCOB Services PMI final reading revealed an improvement to 54.6 in October, its strongest performance in more than a year, from September's 51.5 reading, and also above the previously estimated 54.5 score.
• Data released previously revealed that German Factory Orders increased 1.1% in September, following a 0.4% contraction in August, and beating expectations of a 1% growth. Year-on-year, however, orders have declined 4.3% in September after increasing by 2.1% in the previous month.
• In the US, in the absence of official employment data releases, all eyes will be on the ADP Employment Change figures for further clues about the Fed's rate path. The report is forecast to show a net increase of 25,000 jobs in October, following a 32,000 decline in September, levels well below the 150,000 average new jobs created per month from 2010 to 2025.
• The US ISM Services PMI is also due this Wednesday. The market consensus anticipates a moderate rebound to 50.8 in October, from 50 in September.
   

Technical Analysis: EUR/USD remains vulnerable with 1.1440 support in bears' focus
 

EUR/USD 4-Hour Chart
 

The EUR/USD pair is trying to pick up from three-month lows, but upside attempts keep finding sellers after a nearly 1.5% sell-off in the last five trading days. Technical indicators remain well within negative territory, but the 4-hour Relative Strength Index (RSI) is flirting with oversold levels, while the Moving Average Convergence Divergence highlights a strong negative pressure, suggesting the possibility of some consolidation.

The immediate bias, however, remains bearish with Tuesday's low at the mentioned 1.1475 area at hand. The measured target of the broken triangle pattern, which meets the price at the 261.8% Fibonacci retracement of the late October rally, is near 1.1440. Further down, August's low comes around 1.1390.

To the upside, the pair should return above the 1.1500 area to ease bearish pressure and shift the focus towards Wednesday's high at 1.1530 and the previous support area near 1.1545 (October 14, 30 lows). Further up, the next target is the October 22 and 23 lows around 1.1580.

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