Technical Analysis EUR/USD for 8/5/15

Wednesday’s ADP Private Payroll report will headline U.S. economic data releases, along with the ISM services data.  The dollar appears to be gaining traction as it has already broken out against other currencies where policy is diverging.  The EUR/USD has touched intraday lows of 1.0896, with selling picking up on the move near 1.0935.

Support on the currency pair is seen near an upward sloping trend line that connects the lows in April to the lows in July and comes in at 1.0850.  A close below this level would lead to a test of the July lows at 1.08 and then the April lows at 1.06.  Momentum seems to have increased as the RSI moved lower with prices action, but still remains in the middle of the neutral range printing a reading of 41.