EUR/USD trims gains and retreats to 1.1620 ahead of ADP

• The pair retreats from recent tops near 1.1650.
• The greenback finds support around the 95.00 handle.
• US ADP report, ISM Non-manufacturing next on tap in the docket.

After climbing to the mid-1.1600s on Wednesday, EUR/USD is now shedding some ground and returning to the vicinity of the 1.1600 mark.

EUR/USD looks to data, trade

The pair remains sidelined so far this week, with gains capped in the mid-1.1600s and decent support in the 1.1540 region, coincident with the key 21-day SMA.

On another direction, alternating risk trends, cautiousness in light of the US-China trade dispute and developments in the EM FX space continue to drive the sentiment in the global markets.

In the data space, earlier data saw German Factory Orders contracting at a monthly 0.9% in July, missing consensus.

Later in the NA session, US ADP report is due along with weekly initial Claims, Durable Goods Orders, Factory Orders and the significant ISM Non-manufacturing, all preceding tomorrow’s critical Non-farm Payrolls.

EUR/USD levels to watch

At the moment, the pair is losing 0.04% at 1.1626 and a break below 1.1508 (low May 29) would target 1.1449 (50% Fibo of the 2017-2018 up move) and finally 1.1299 (2018 low Aug.15). On the flip side, the next hurdle aligns at 1.1659 (high Sep.6) seconded by 1.1734 (high Aug.28) and finally 1.1745 (high Jul.31).