#EURUSD @ 1.00213 US dollar reverses late on Friday and turns negative. (Pivot Orderbook analysis)

…
This is a premium post.
[s2If !current_user_can(access_s2member_level4)]Please register for PREMIUM VERSION HERE to read full post below containing analysis. In case of any error or you think you are not able to read the full post below, please email us at support#nehcap.com [lwa][/s2If] [s2If current_user_can(access_s2member_level4)]

• US dollar reverses late on Friday and turns negative.
• US yields off highs following the Consumer Sentiment report.
• EUR/USD is about to end the week with minor changes.

The pair currently trades last at 1.00213.

The previous day high was 1.0018 while the previous day low was 0.9956. The daily 38.2% Fib levels comes at 0.9994, expected to provide support. Similarly, the daily 61.8% fib level is at 0.998, expected to provide support.

The EUR/USD rose from 0.9970 and climbed to 1.0035, hitting the highest level since Tuesday amid a reversal of the US dollar across the board following University of Michigan’s Consumer Sentiment report.

On European hours, the EUR/USD hit the lowest level in a week under 0.9950 and a few hours later printed a multi-day high driver by a weaker dollar, affected after UoM Consumer Sentiment. The main index rose to 59.2, below the 60 of market consensus. The key numbers were inflation expectations that dropped across the curve.

The key event ahead is the FOMC decision on Wednesday. A 75 basis points rate hike is expected. The decision, the dot plot and the tone of the Fed will likely determine the next direction of the EUR/USD.

“Narrative shattered – US inflation is unrelenting, throwing the “Fed pivot” story up in the air and boosting the dollar. Europe’s efforts to mitigate the energy crisis were insufficient to withstand the greenback’s strength. All eyes are now on the world’s most important central bank, with everything else playing second fiddle”, said Yohay Elay, analyst at FXStreet.

The EUR/USD is about to end the week flat. The trend in the pair is clearly bearish but some so far it had been able to remain above 0.9850/0.9900. If the euro manages to post a close above 1.0070 it could alleviate the negative pressure. The following level is the 1.0300 area that contains the 20-week moving average. On the flip side, support is located at 0.9910 followed by 0.9860 and 0.9730.

Technical Levels: Supports and Resistances

EURUSD currently trading at 1.0017 at the time of writing. Pair opened at 1.0 and is trading with a change of 0.17 % .

The pair is trading above its 20 Daily moving average @ 0.9989, below its 50 Daily moving average @ 1.0101 , below its 100 Daily moving average @ 1.0323 and below its 200 Daily moving average @ 1.0737

The previous day high was 1.0018 while the previous day low was 0.9956. The daily 38.2% Fib levels comes at 0.9994, expected to provide support. Similarly, the daily 61.8% fib level is at 0.998, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 0.9965, 0.9929, 0.9903
• Pivot resistance is noted at 1.0027, 1.0053, 1.0089

[/s2If]
Join Our Telegram Group