The single currency failed to hold daily gains and declined during the London session on Thursday as weak German data once again worsened sentiment. The EURUSD pair was seen hovering around 1.1620 in the morning.
German factory orders deteriorated further in July and worsened to -0.9% year-on-year from -0.8% previously. Analysts had expected a big improvement to 1.9%, which failed to happen. This is a very important indicator of the health of the German economy and its down two months in a row, implying a possible slowdown of the economic growth.
Later in the day, market participants will pay attention to the ADP employment report for the month of August, which is projected to show 190,000 new jobs, down from 219,000 in July. Moreover, initial jobless claims will be published as well.
The EURUSD pair is now trying to breach the short-term bearish trend line, which is around 1.1640. Should it be successful, further rise toward previous highs around 1.17 could occur, or eventually the strong resistance of 1.1750 could be in play.
On the downside, the support is seen at 1.16 and if not held, the price could retest a strong demand zone of previous lows at 1.1550.