#EURUSD @ 0.99826 -imp levels: is scaling higher towards 1.0000 amid uncertainty over Fed’s commentary at Jackson Hole.

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• EUR/USD is scaling higher towards 1.0000 amid uncertainty over Fed’s commentary at Jackson Hole.
• Two schools of thought on the Fed’s commentary have brought volatility in the DXY.
• German energy supply issues could heat up further on supply cut from Nord Stream 1 pipeline.

The pair currently trades last at 0.99826.

The previous day high was 0.9999 while the previous day low was 0.991. The daily 38.2% Fib levels comes at 0.9944, expected to provide support. Similarly, the daily 61.8% fib level is at 0.9965, expected to provide support.

The EUR/USD pair has sensed buying interest after remaining sideways around 0.9960 in the Tokyo session. The pair is marching north to recapture the magical figure of 1.0000 as the US dollar index (DXY) is trading vulnerable at the open. The DXY has slipped to near 108.50 after facing selling pressure around 108.50.

Mixed responses from the market participants on Federal Reserve (Fed) chair Jerome Powell’s commentary at Jackson Hole Economic Symposium on guidance over interest rates is bewildering investors. Two schools of thought on the Fed’s stance over interest rates after a contraction in the private sector are resulting in volatile moves in the DXY.

The consequences of hiking interest rates vigorously by the Fed have resulted in a meaningful decline in the PMI data. Therefore, one school of thought believes that the Fed should slow down the pace as a decline in economic activities could affect the confidence of the private sector in the economy. And, the second school of thought favors the continuation of pace in hiking interest rates as achieving price stability is the foremost priority.

On the Eurozone front, the odds of a German energy crisis are scaling higher as Nord Stream 1 pipeline for energy supply to Germany from the Baltic Sea is going under unscheduled maintenance for the last three days of August. In times, when the German energy market is already facing supply issues, more supply tightening may elevate the energy prices significantly.

Technical Levels: Supports and Resistances

EURUSD currently trading at 0.9983 at the time of writing. Pair opened at 0.9968 and is trading with a change of 0.15 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 1.0161, 50 SMA 1.0249, 100 SMA @ 1.0449 and 200 SMA @ 1.0841.

The previous day high was 0.9999 while the previous day low was 0.991. The daily 38.2% Fib levels comes at 0.9944, expected to provide support. Similarly, the daily 61.8% fib level is at 0.9965, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 0.9919, 0.987, 0.983
• Pivot resistance is noted at 1.0008, 1.0048, 1.0096

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