#EURUSD @ 0.99740 Downside momentum loss on the broader picture still favors the domination of Eurozone bulls. (Pivot Orderbook analysis)

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• Downside momentum loss on the broader picture still favors the domination of Eurozone bulls.
• The asset has slipped below the 61.8% Fibo retracement at 0.9994.
• Auction below 20-EMA adds to the downside filters.

The pair currently trades last at 0.99740.

The previous day high was 1.0024 while the previous day low was 0.9956. The daily 38.2% Fib levels comes at 0.9998, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.9982, expected to provide resistance.

The EUR/USD pair has dropped to near Wednesday’s low around 0.9969 in the Asian session. The asset has picked offers after a downside break of the consolidation formed in a narrow range of 0.9980-0.9984.

On a four-hour scale, the asset witnessed a strong rebound after displaying downside momentum loss at around September 6 low of 0.9864. The momentum oscillator, Relative Strength Index (RSI) (14) made a higher low while the asset displayed a lower low.

A recovery in the asset was followed by a sheer retracement, which has dragged the asset below 61.8% Fibo area. The marking of the retracement tool from September 6 low at 0.9864 to Monday’s high at 1.0198 displayed the placement of 61.8% Fibo retracement at 0.9994.

The asset has dropped below the 20-period Exponential Moving Average (EMA) at 1.0022, which adds to the downside filters.

Investors should be aware of the fact that retracement has been observed after a Bullish Divergence. A few times retracement gets more steeped due to sour market sentiment. However, the smart money structure is indicating a buy signal above the 20-EMA, which will send the pair towards a 38.2% retracement at 1.0070, followed by Monday’s high at 1.0198.

On the flip side, a break below Wednesday’s low at 0.9955 will drag the asset towards the round-level support of 0.9900, followed by a 19-year low at 0.9864.

Technical Levels: Supports and Resistances

EURUSD currently trading at 0.9974 at the time of writing. Pair opened at 0.9983 and is trading with a change of -0.09 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 0.9993, 50 SMA 1.0104, 100 SMA @ 1.0328 and 200 SMA @ 1.0743.

The previous day high was 1.0024 while the previous day low was 0.9956. The daily 38.2% Fib levels comes at 0.9998, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.9982, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 0.9951, 0.992, 0.9883
• Pivot resistance is noted at 1.0019, 1.0055, 1.0087

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