#EURUSD @ 0.99397 -imp levels: A subdued pullback in the pair may turn into a fresh bearish impulsive wave sooner.

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• A subdued pullback in the EUR/USD pair may turn into a fresh bearish impulsive wave sooner.
• A downbeat release of Germany’s PMI will strengthen the odds of a recession.
• Germany’s Manufacturing PMI is declining consecutively since February this year.

The pair currently trades last at 0.99397.

The previous day high was 1.0047 while the previous day low was 0.9926. The daily 38.2% Fib levels comes at 0.9972, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.0001, expected to provide resistance.

The EUR/USD pair is attempting to build a base around 0.9940 after a vertical decline on Monday. The major has auctioned in a narrow range of 0.9933-0.9950 in the Asian session but is likely to deliver a downside break on lower expectations for Germany’s PMI data. On Monday, the asset recorded severe losses after losing the magical figure of 1.0000.

According to the preliminary estimates, the German S&P Global/BME Manufacturing PMI data will land at 48.3, lower than the prior release of 49.3. Also, the Services PMI is seen downbeat at 49 vs. the former print of 49.7. It is worth noting that Germany is a core member of the European Union (EU) and declining Germany PMI will have a significant impact on the shared currency.

Also, investors should be aware of the fact that the Manufacturing PMI is declining consecutively since February this year. And more downside in the economic data would bolster the odds of a recession in Germany. Apart from that, Russia will halt natural gas supplies to Europe for three days in August to run the unscheduled maintenance under the Baltic Sea to Germany. The unexpected natural gas supply cut to Germany from Nord Stream 1 pipeline will accelerate the imbalance of the energy demand-supply mechanism and may drag the shared currency.

On the dollar front, the US dollar index (DXY) is displaying a subdued performance in the Asian session. The asset is expected to remain sideways ahead of the US PMI data. As per the estimates, the S&P Global Manufacturing PMI will land at 51.5, lower than the prior print of 52.2. Contrary to that, the Services PMI will improve substantially to 49.1 vs. the former figure of 47.3.

Technical Levels: Supports and Resistances

EURUSD currently trading at 0.9942 at the time of writing. Pair opened at 0.9944 and is trading with a change of -0.02 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 1.0181, 50 SMA 1.0267, 100 SMA @ 1.0467 and 200 SMA @ 1.0854.

The previous day high was 1.0047 while the previous day low was 0.9926. The daily 38.2% Fib levels comes at 0.9972, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.0001, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 0.9898, 0.9852, 0.9777
• Pivot resistance is noted at 1.0018, 1.0093, 1.0139

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