EUR/USD struggles to sustain above 1.1300 mark

   •  Dismal ADP report helped the pair to build on the recent positive momentum.
   •  Upbeat US ISM PMI provided some respite to the USD bulls and capped gains.
   •  Focus now shifts to the latest ECB monetary policy update, due on Thursday.

The EUR/USD pair faded a knee-jerk bullish spike and has now retreated around 50-pips from seven-week tops, levels just above the 1.1300 handle.

The pair built on its recent positive momentum and spiked to an intraday high level of 1.1304 - the highest since April 18 in reaction to dismal ADP report, showing that the US economy added only 27K new jobs in May.

Bulls, however, failed to capitalize on the positive momentum, rather opted to lighten their positions following the release of upbeat US ISM non-manufacturing PMI, which provided a much-needed respite to the US Dollar bulls.

With Wednesday's important macro data out of the way, the latest leg of downtick could further be attributed to some repositioning trade ahead of the latest ECB monetary policy update, scheduled on Thursday.

The decision will be followed by the post-meeting press conference by the ECB President Mario Draghi, which should play an important role in influencing the near-term sentiment surrounding the shared currency.

Technical levels to watch