#EURUSD @ 0.98344 has sensed a sigh of relief after dropping to near 0.9813. (Pivot Orderbook analysis)

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• EUR/USD has sensed a sigh of relief after dropping to near 0.9813.
• Extreme hawkish guidance from the Fed has demolished the shared currency bulls.
• Russian military threat to use nuclear weapons has underpinned the risk-off impulse.

The pair currently trades last at 0.98344.

The previous day high was 0.9976 while the previous day low was 0.9813. The daily 38.2% Fib levels comes at 0.9876, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.9914, expected to provide resistance.

The EUR/USD pair is displaying a lack of selling pressure while re-testing Wednesday’s low at 0.9813 in the Tokyo session. The asset has turned sideways which could be considered as an intraday inventory accumulation, which could ditch the downside momentum for a while. On a broader note, the major witnessed a steep fall after delivering a downside break of the consolidation formed in a 0.9950-1.0050 range.

The shared currency bulls witnessed extreme volatility on Wednesday over the monetary policy announcement by the Federal Reserve (Fed). The currency market arena got electrified after Fed chair Jerome Powell escalated guidance on interest rates.

A rate hike by 75 basis points (bps) was already expected by the market participants and the latter have already priced them in risk-perceived assets. However, a higher-than-expected hawkish stance on interest rates by the Fed spooked the market sentiment.

The Fed sees terminal rates making top at 4.6%, higher than the former expectations of 3.8%. Fed’s Powell is ready to sacrifice the growth projections, employment generation, housing sales, and demand for durable goods to fix the inflation chaos.

Meanwhile, the shared currency bulls are worried over fresh impetus on Russia’s nuclear attack talks. Russian leader Vladimir Putin’s announcement of military mobilization and threat to use nuclear weapons have refreshed fears of war situation. The retaliation from Russia against western sanctions has triggered a risk-off impulse.

Also, the German government is exploiting its all measures of collecting energy to make sufficient inventories to cater to the demand during the winter season.

Technical Levels: Supports and Resistances

EURUSD currently trading at 0.9818 at the time of writing. Pair opened at 0.9837 and is trading with a change of -0.19 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 0.9985, 50 SMA 1.0091, 100 SMA @ 1.0299 and 200 SMA @ 1.0711.

The previous day high was 0.9976 while the previous day low was 0.9813. The daily 38.2% Fib levels comes at 0.9876, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.9914, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 0.9775, 0.9713, 0.9612
• Pivot resistance is noted at 0.9938, 1.0039, 1.0101

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