#EURUSD @ 0.99587 is aiming to scale lower towards the critical support of 0.9900 amid hawkish Fed bets. (Pivot Orderbook analysis)

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• EUR/USD is aiming to scale lower towards the critical support of 0.9900 amid hawkish Fed bets.
• As per the CME FedWatch tool, more than 80% odds are favoring a 75 bps rate hike.
• Germany is exploring its all measures to create sufficient gas inventories for catering winter season.

The pair currently trades last at 0.99587.

The previous day high was 1.0051 while the previous day low was 0.9955. The daily 38.2% Fib levels comes at 0.9992, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.0014, expected to provide resistance.

The EUR/USD pair is auctioning around the critical support of 0.9960 in the Tokyo session. The asset is expected to deliver a downside break of the long-week consolidation formed in a range of 0.9946-1.0050. The major will face an intense sell-off as investors are placing bets on a bigger-than-expected rate hike now.

Earlier, investors were expecting a third consecutive rate hike by 75 basis points (bps) to step up the interest rates to 3-3.25%. Now, a full percent rate hike alternative has also joined the race to bring price stability sooner. Risk-perceived assets are surrendering their pullbacks and attracting offers from market participants.

The recent reading of the inflation rate at 8.3%, higher than the expectations of 8.1%, has dented the market sentiment. No doubt, the price pressures are declining but the rate of decline is not lucrative in comparison with the pace of hiking interest rates. Therefore, the odds of a 100 bps rate hike by the Fed have hogged the limelight.

On the Eurozone front, the German government is exploring its all measures to make sure that the administration must have sufficient energy inventories to cater to the elevated demand during the winter season. The government has promised to bail out the giant German gas importer Uniper but taking a 30% stake in the board. The company delivered extreme losses after Russia cut off gas supplies to Germany deliberately.

Also, the European Central Bank (ECB) is providing hawkish guidance on interest rates so that higher inflation rates should not settle in the economic behavior.

Technical Levels: Supports and Resistances

EURUSD currently trading at 0.9966 at the time of writing. Pair opened at 0.9971 and is trading with a change of -0.05 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 0.9992, 50 SMA 1.0096, 100 SMA @ 1.0307 and 200 SMA @ 1.0718.

The previous day high was 1.0051 while the previous day low was 0.9955. The daily 38.2% Fib levels comes at 0.9992, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.0014, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 0.9934, 0.9897, 0.9839
• Pivot resistance is noted at 1.003, 1.0088, 1.0125

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