EURUSD @ 1.03230 – Support/Resistance analysis: oscillates around 1.0320 ahead of Eurozone second-tier data and US Michigan CSI

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EURUSD @ 1.03230 – Support/Resistance analysis: oscillates around 1.0320 ahead of Eurozone second-tier data and US Michigan CSI

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• EUR/USD has turned sideways around 1.0320 as DXY rebounds sharply.
• Fresh evidence of exhaustion in the US CPI is meaningful but short-lived if not find follow-ups.
• A vulnerable performance is expected from Eurozone Industrial Production data.

The pair currently trades last at 1.03230.

The previous day high was 1.0369 while the previous day low was 1.0202. The daily 38.2% Fib levels comes at 1.0305, expected to provide support. Similarly, the daily 61.8% fib level is at 1.0266, expected to provide support.

The EUR/USD pair is auctioning in an inventory distribution phase after a sheer downside move. The asset declined sharply after testing the monthly high of 1.0370. Failing to print a fresh monthly high due to a less-confident upside rally delighted the market participants to deploy significant offers at elevated levels. Usually, an inventory distribution phase after a vertical fall results in a continuation of downside momentum as investors bet on breaking the consolidation.

The US dollar index (DXY) displayed a confident rebound after sensing an intense buying interest while revisiting the six-week low at 104.64. The DXY has extended its gains to near 105.20 after a firmer rebound and is likely to advance further as investors are shrugging off a one-time softer US inflation show.

No doubt, the fresh evidence of exhaustion in the US Consumer Price Index (CPI) is indicating that good days are ahead and the Federal Reserve (Fed)’s journey towards achieving price stability is visible now despite being blurred. However, an annual US CPI figure of 8.5% is not the right time to enjoy a ball as the Fed will continue on its path of accelerating interest rates. For the record, the extent of hawkish guidance will trim abruptly.

Going forward, investors will keep an eye on the US Michigan Consumer Sentiment Index (CSI) data. The sentiment data is expected to improve to 52.2 from the prior release of 51.5. A consecutive improvement is expected in the confidence of consumers after the data slipped to 50 for the first time in the past 20 years.

Also, the Eurozone will report the Industrial production data, which are seen lower at 0.2% and 0.8% from their prior releases on a monthly and an annual basis respectively.

Technical Levels: Supports and Resistances

EURUSD currently trading at 1.0322 at the time of writing. Pair opened at 1.03 and is trading with a change of 0.21 % .

The pair is trading above its 20 Daily moving average @ 1.0188, below its 50 Daily moving average @ 1.0346 , below its 100 Daily moving average @ 1.0539 and below its 200 Daily moving average @ 1.0909

The previous day high was 1.0369 while the previous day low was 1.0202. The daily 38.2% Fib levels comes at 1.0305, expected to provide support. Similarly, the daily 61.8% fib level is at 1.0266, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 1.0212, 1.0124, 1.0045
• Pivot resistance is noted at 1.0378, 1.0457, 1.0545

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