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Forex: EUR/USD climbs above 1.3200

FXstreet.com (Barcelona) - The shared currency is extending its correction higher on Wednesday, leaving behind the key resistance at 1.3200, as market participants remain biased towards the riskier assets.

Investors are focused on the ADP report and the ISM manufacturing index in the US, expected at 150K and 50.9, respectively. “ We do think that the poor economic performance and evidence of disinflation will quiet some of the hawks (maybe even lose the dissent) and that should Friday's employment report also disappoint, the hawks may have to fight a rear-guard action by the doves, like Chicago Fed's Evans, who wants the Fed to do more”, argued the research team at BBH.

The cross is now advancing 0.32% at 1.3211 with the next hurdle at 1.3226 (50% of Feb-Apr slide) ahead of 1.3319 (high Feb.25) and finally 1.3343 (61.8% of Feb-Apr slide).
On the flip side, a breakdown of 1.3120 (hourly high Apr.30) would open the door to 1.3052 (MA21d) and finally 1.2988 (low Apr.25).

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