#EURUSD @ 0.99697 -imp levels: is expected to deliver a lackluster performance ahead of Fed Powell’s speech.

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• EUR/USD is expected to deliver a lackluster performance ahead of Fed Powell’s speech.
• Fed’s Powell is expected to follow the footprints of RBNZ’s Orr and may sound hawkish
• The arrival of winter will impact the already vulnerable Europe energy market.

The pair currently trades last at 0.99697.

The previous day high was 1.0034 while the previous day low was 0.9949. The daily 38.2% Fib levels comes at 1.0001, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.9981, expected to provide resistance.

The EUR/USD pair is auctioning in a limited territory as investors are awaiting commentary from Federal Reserve (Fed) chair Jerome Powell at Jackson Hole Economic Symposium. The asset is oscillating in a narrow range of 0.9963-0.9976 ahead of cues from Fed Powell’s commentary for more informed decisions. However, the downside remains favored as odds are favoring a hawkish commentary on interest rates.

The cues from Reserve Bank of New Zealand (RBNZ) Governor Adrian Orr’s commentary at Jackson Hole clear that the central bank will stick to its policy tightening strategy, keeping in mind that the economy will face more heat from the unavailability of cheap money in the economy. More or less, a similar hawkish commentary is expected from Fed’s Powell over guidance on interest rates.

There is no denying the fact that price pressures have displayed signs of maximum upside but an inflation rate figure above 8% is still vulnerable to the economy. So investors should brace for more decline in the extent of economic activities as rate hikes will keep up the ongoing pace.

On the Eurozone front, investors are worried over soaring energy prices as winter is knocking at the door. The European economy is facing the heat of an energy crisis after its embargo on Russian energy imports. It seems like the hasty decision by the European Union (EU) to boycott Russian energy is haunting European Central Bank (ECB) policymakers.

The energy supply crisis is expected to accelerate further as Nord Stream 1 pipeline from Russia to Germany through the Baltic Sea for supplying natural gas is going under unscheduled maintenance. Therefore, the pipeline will remain shut for the last three days of August.

Technical Levels: Supports and Resistances

EURUSD currently trading at 0.9974 at the time of writing. Pair opened at 0.9974 and is trading with a change of 0.0 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 1.015, 50 SMA 1.0237, 100 SMA @ 1.044 and 200 SMA @ 1.0834.

The previous day high was 1.0034 while the previous day low was 0.9949. The daily 38.2% Fib levels comes at 1.0001, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.9981, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 0.9938, 0.9901, 0.9853
• Pivot resistance is noted at 1.0022, 1.007, 1.0107

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