EUR/USD eases from tops, back around 1.20 handle ahead of US ADP

   •  Fails to capitalize on early recovery move despite mostly in-line EZ PMI & GDP.
   •  A follow-through uptick in the US bond yields helps limit USD downside and cap gains.
   •  Traders eye ADP report for some impetus ahead of the highly anticipated FOMC.

The EUR/USD pair faded an early European session spike to the 1.2030 region and has now retreated around 30-pips from session tops. 

The pair stalled its recent bearish slide to the lowest level since January and gained some respite from a modest US Dollar retracement. The pair, however, failed to capitalize on the early up-move and also seemed to have negated slightly better-than-expected composite EZ PMI print / in-line GDP figures. 

A follow-through uptick in the US Treasury bond yields helped limit any deeper slide for the USD. This coupled with investors' reluctance to place any aggressive bets, ahead of the highly anticipated FOMC decision, further collaborated towards capping any meaningful recovery for the major. 

Ahead of the key event risk, ADP report on the US private sector employment would be looked upon for some short-term trading impetus. The key focus, however, will be on the FOMC statement, wherein clues over future tightening path might influence the pair's momentum in the near-term.

Technical levels to watch

A fresh wave of selling pressure has the potential to continue dragging the pair further towards 1.1935 intermediate level en-route YTD lows support near the 1.1915 region. On the upside, the 1.2030 region now seems to have emerged as an immediate support, above which the recovery move could get extended towards 1.2075 level en-route the 1.2100 handle.