EUR/USD turns positive ahead of ADP report

The EUR/USD pair's recovery from session low level around 1.0620 region has gained further traction, lifting the pair to fresh session peak level near 1.0660-65 region.

During early European session, minor selling pressure around the shared currency halted after composite Euro-zone flash CPI print for November matched consensus estimates. According Wednesday report released by Eurostat, consumer prices ticked higher in November and rose to an annualized pace of 0.6% as compared to October's 0.5% rise. Meanwhile, the core CPI matched previous month's reading and consensus estimates and came-in at 0.8% for the month of November. 

Focus now shifts to US ADP report on private sector employment, which is seen as a precursor to Friday's official jobs report (NFP), and hence, should provide fresh impetus during early NA session. 

Also in focus would be ECB President Mario Draghi's speech, which would be looked upon to gain some insights over the central bank's monetary policy stance at its next monetary policy meeting on December 8, and other US macro releases, including Fed's preferred inflation gauge - Core PCE Price Index, Chicago PMI and pending home sales data.

Technical outlook

Valeria Bednarik, Chief Analyst at FXStreet, notes, "according to the 4 hours chart, a slightly positive tone prevails, as the price is holding above a modestly bullish 20 SMA, while the RSI indicator resumed its advance, heading north around 58. The Momentum indicator, however, remains stuck around its 100 level."

She further writes, "At this point, the pair needs to extend beyond 1.0700, the 23.6% retracement of the latest daily slump to be able to gather upward strength, and extend up to 1.0745 first, en route to 1.0790. Failure to hold above 1.0600 on the other hand, should see the pair falling down to 1.0550, while below this last the 1.0500/20 region is the next possible bearish target."