EUR/USD probing lows near 1.0560

The selling pressure around the single currency remains unabated so far this week, now dragging EUR/USD to once again test the area of session lows around 1.0560.

EUR/USD attention to US ADP

The pair is retreating since Monday amidst a firm fashion in the greenback, coming down to re-test the relevant resistance area around 1.0560 and thus extending the rejection from recent tops near 1.0640 (Friday).

Rising bets on a potential rate hike by the Fed next week have been weighing on spot in recent weeks, as markets now places the probability of a 25 np raise well north of 80%.

Adding concerns to EUR, French election polls (OpinionWay) continue to show far-right candidate Marine Le Pen leading the vote intentions for the first round, although she would likely lose in a hypothetical second round vs. either candidates E.Macron or F.Fillon.

On the data front, German Industrial Production expanded more than expected during January at a monthly 2.8%, while French trade deficit more than doubled to nearly €8 billion during the same period.

Across the pond, US ADP report is expected to show the private sector has added nearly 200K jobs during February.

EUR/USD levels to watch

At the moment the pair is losing 0.08% at 1.0558 and a break below 1.0513 (low Mar.1) would target 1.0499 (low Mar.3) en route to 1.0492 (low Mar.2/Feb.22). On the upside, the initial hurdle is located at 1.0588 (20-day sma) followed by 1.0606 (55-day sma) and finally 1.0640 (short term resistance line).