EUR/USD jumps above 1-hour 100-MA in Asia

EUR/USD jumped above the 1-hour 100-MA level of 1.1764 on the back of broad based USD selling in Asia.

The weakness in the USD could be due to slight weakness in the US rates in the overnight trade.

The currency pair fell below 1.17 on Tuesday for the first time in six weeks, but quickly recovered losses as Spanish markets stabilized, German yields increased. The EUR may stabilize around 1.17 if there is no further escalation of political tensions in Spain.

Meanwhile, the USD could maintain the firm tone if the ISM non-manufacturing report due later today beats estimates. Kathy Lien from BK Asset Management says, "non-manufacturing ISM is generally more important [than the ADP] because the employment component of the report has a stronger correlation with non-farm payrolls so we'll be watching that closely as it could erase or exacerbate the market's reaction to NFP."

EUR/USD Outlook - 1.17 a strong support

Ivan Delgado, Chief Editor at FXStreet writes, " The Euro keeps finding solid bid every time 1.17 is approached, with today's close near 1.1750 providing more evidence of the stubbornness to reinstate longs at the aforementioned level. EUR/USD price action resembles the familiar buying activity seen around the same vicinity back in August, the origin of its latest macro rally before encountering what has so far proven to be a nut too tough to crack at 1.20. Political woes in Germany and Spain in recent weeks, as ING notes, "have provided a reality check on the way investors view EZ political risks."