EUR/USD remains pinned near lows with Eurozone services data on tap

• The Euro remains depressed below 1.1500 after hitting fresh three-month lows at 1.1473.
• German and Eurozone services activity figures are expected to confirm a strong performance in October.
• The US ADP Employment report is forecast to add to evidence of a stalled labour market.

EUR/USD consolidates losses below the 1.1500 level on Wednesday's early European session, trading at 1.1488 at the time of writing. A risk-averse sentiment, amid sharp sell-offs in equities around the world, is underpinning demand for the safe-haven US Dollar as traders pare back hopes of Federal Reserve (Fed) interest rate cuts in December amid the diverging views among its policymakers.

The focus in Europe will be on the final release of the HCOB Services Purchasing Managers' Index (PMI) figures for Germany and the Eurozone, which are expected to confirm that economic activity in the sector accelerated significantly in October. Somewhat later, the Eurozone's Producer Price Index (PPI) is forecast to highlight ongoing deflationary trends.

In the US, the government shutdown has extended for its fifth week, on track to become the longest in the record. This gives particular relevance to the ADP Employment report, due later in the day, and the ISM Services Purchasing Managers' Index (PMI), both of which are likely to show mild rebounds after September's downbeat figures.

Daily digest market movers: Risk aversion buoys the US Dollar

• The US Dollar remains bid as investors rush for safety, with equities across the globe selling off while they ponder the chances of further Fed monetary easing in the December meeting, amid hawkish comments from Fed Chairman Jerome Powell and diverging views from the central bank's policymakers.
• Economic data released in Germany earlier on Wednesday revealed that German Factory Orders increased 1.1% in September, following a 0.4% contraction in August, and beating expectations of a 1% growth. Year-on-year, however, orders have declined 4.3% in September after increasing by 2.1% in the previous month.
• Later on the day, German HCOB Services PMI is expected to confirm that the sector's activity accelerated for its second consecutive month, to 54.5 in October, its strongest performance in more than a year, from September's 51.5 reading.
• Likewise, the Eurozone HCOB Services PMI is expected to confirm an improvement to 52.6 in October, from the previous month's 51.3 reading anticipated by preliminary estimations.
• In the US, in the absence of official employment data releases, all eyes will be on the ADP Employment Change figures for further clues about the Fed's rate path. The report is forecast to show a net increase of 25,000 jobs in October, following a 32,000 decline in September, levels well below the 150,000 average new jobs created per month from 2010 to 2025.
• The US ISM Services PMI is also due this Wednesday. The market consensus anticipates a moderate rebound to 50.8 in October, from 50 in September.

Technical Analysis: EUR/USD remains vulnerable with 1.1440 support in bears' focus

The EUR/USD pair is trying to pick up from three-month lows, but upside attempts keep finding sellers after a nearly 1.5% sell-off in the last five trading days. Technical indicators remain well within negative territory, but the 4-hour Relative Strength Index (RSI) is flirting with oversold levels, while the Moving Average Convergence Divergence highlights a strong negative pressure, suggesting the possibility of some consolidation.

The immediate bias, however, remains bearish with Tuesday's low at the mentioned 1.1475 area at hand. The measured target of the broken triangle pattern, which meets the price at the 261.8% Fibonacci retracement of the late October rally, is near 1.1440. Further down, August's low comes around 1.1390.

To the upside, the pair should return above the 1.1500 area to ease bearish pressure and shift the focus towards Wednesday's high at 1.1530 and the previous support area near 1.1545 (October 14, 30 lows). Further up, the next target is the October 22 and 23 lows around 1.1580.