#EURUSD @ 0.97775 A combination of factors drags to its lowest level since October 2002 on Friday. (Pivot Orderbook analysis)

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• A combination of factors drags EUR/USD to its lowest level since October 2002 on Friday.
• Aggressive Fed rate hike bets and the risk-off impulse lift the USD to a fresh 20-year high.
• Disappointing PMIs from France and Germany fuel recession fears and weigh on the euro.

The pair currently trades last at 0.97775.

The previous day high was 0.9908 while the previous day low was 0.9807. The daily 38.2% Fib levels comes at 0.9845, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.9869, expected to provide resistance.

The EUR/USD pair comes under some renewed selling pressure on Friday and drops to its lowest level since October 2002, around the 0.9765 region during the early European session.

Following the previous day’s volatile price swings, the US dollar regains strong positive traction and is seen dragging the EUR/USD pair. In fact, the USD Index, which measures the greenback’s performance against a basket of currencies, hits a new 20-year peak and remains well supported by a more hawkish stance adopted by the Fed.

It is worth mentioning that the US central bank signalled on Wednesday that it will likely undertake more aggressive rate increases to cap inflation. This, along with the prevalent risk-off environment, offers additional support to the safe-haven greenback. The market sentiment remains fragile amid growing worries about a deeper global economic downturn.

The euro, on the other hand, is pressured by the risk of a further escalation in geopolitical tensions, especially after Russian President Vladimir Putin announced a partial military mobilization. Apart from this, the energy crisis in Europe, which could drag the region’s economy deeper into recession, is also seen weighing on the shared currency.

The market fears were further fueled by the release of worse-than-expected flash Manufacturing PMI prints from France and Germany – the Eurozone’s two largest economies. Furthermore, Friday’s downfall could also be attributed to some technical selling below the 0.9800 round-figure mark, which might have already set the stage for further losses.

Technical Levels: Supports and Resistances

EURUSD currently trading at 0.9773 at the time of writing. Pair opened at 0.9831 and is trading with a change of -0.59 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 0.9978, 50 SMA 1.0088, 100 SMA @ 1.0292 and 200 SMA @ 1.0703.

The previous day high was 0.9908 while the previous day low was 0.9807. The daily 38.2% Fib levels comes at 0.9845, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.9869, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 0.9789, 0.9748, 0.9689
• Pivot resistance is noted at 0.989, 0.9949, 0.999

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