#EURUSD @ 1.00273 retreats from one-week high, snaps four-day uptrend. (Pivot Orderbook analysis)

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• EUR/USD retreats from one-week high, snaps four-day uptrend.
• Sour sentiment, pre-Fed anxiety joins China/Europe chatters to recall bears.
• Multi-day low of US inflation expectations raised short-squeeze fears to underpin corrective bounce.
• Second-tier US data, speech from ECB President Lagarde eyed for fresh impulse.

The pair currently trades last at 1.00273.

The previous day high was 1.0029 while the previous day low was 0.9966. The daily 38.2% Fib levels comes at 1.0005, expected to provide support. Similarly, the daily 61.8% fib level is at 0.999, expected to provide support.

EUR/USD takes offers to renew intraday low around 1.0020 as risk appetite weakens during full markets on Tuesday. In addition to the return of the Japanese and British traders after a long weekend, fears surrounding China and Europe join a cautious mood ahead of the key weekly events to weigh on the major currency pair.

Full markets keep the yields on a firmer footing while portraying the fears of recession. As a result, the US 10-year and 2-year Treasury yields remain sidelined at the highest levels since April 2011 and October 2007 in that order. Also, Japan’s 10-year Government Bond yields (JGBs) jump to the highest since 2016. It should be noted that the S&P 500 Futures fade the previous day’s bounce off a two-month low around 3,920 to also signal the fading optimism.

Monday’s ninth consecutive fall in the US NAHB Housing Market Index joined the multi-day low of the US inflation expectations to previously favor the EUR/USD buyers. The US inflation expectations, as per the 10-year breakeven inflation rate per the St. Louis Federal Reserve (FRED) data, dropped for the third consecutive day to a two-month low near 2.34% by the end of Monday’s North American trading session. More importantly, the 5-year breakeven inflation rate per the FRED data dropped to the lowest levels since September 2021, at 2.44% at the latest.

Additionally, hopes that the market players are already certain about the Fed’s 0.75% rate hike and the same could allow the EUR/USD buyers to pare previous losses around the yearly low after the actual announcements seemed to have favored the recovery moves previously.

Elsewhere, hopes of a major stimulus from the European Commission and hawkish speech from the European Central Bank (ECB) officials also seemed to have favored the EUR/USD buyers.

It’s worth noting, however, that the return of the risk-off is likely to join the pre-event anxiety to exert downside pressure on the EUR/USD prices. That said, ECB President Christine Lagarde may allow the pair sellers to take a breather should she miss the mention of economic fears. Even so, the hawkish Fed expectations keep bears hopeful.

A clear upside break of the 50-SMA immediate hurdle surrounding 1.0035 becomes necessary for the EUR/USD buyers to retake control. Otherwise, the 0.9945 support holds the key to the EUR/USD pair’s further downside.

Technical Levels: Supports and Resistances

EURUSD currently trading at 1.0021 at the time of writing. Pair opened at 1.0024 and is trading with a change of -0.03% % .

The pair is trading above its 20 Daily moving average @ 0.9992, below its 50 Daily moving average @ 1.0097 , below its 100 Daily moving average @ 1.0313 and below its 200 Daily moving average @ 1.0724

The previous day high was 1.0029 while the previous day low was 0.9966. The daily 38.2% Fib levels comes at 1.0005, expected to provide support. Similarly, the daily 61.8% fib level is at 0.999, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 0.9984, 0.9943, 0.992
• Pivot resistance is noted at 1.0047, 1.007, 1.011

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