#EURUSD @ 0.97046 has turned sideways around 0.9700 as investors are laser-focused on US CPI data. (Pivot Orderbook analysis)

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• EUR/USD has turned sideways around 0.9700 as investors are laser-focused on US CPI data.
• Fed policymakers withstand restrictive policy measures despite slowing labor market.
• A hawkish commentary from ECB Lagarde failed to strengthen the shared currency bulls.

The pair currently trades last at 0.97046.

The previous day high was 0.9775 while the previous day low was 0.967. The daily 38.2% Fib levels comes at 0.9735, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.971, expected to provide resistance.

The EUR/USD is displaying a lackluster performance in the early Tokyo session as investors are laser-focused on the US Consumer Price Index (CPI) data. The asset is oscillating around 0.9700 after a rebound from 0.9670 amid a conflicting risk-profile structure. The pullback move in S&P500 in early trade was whitewashed near settlement amid concerns over the release of the US inflation report.

Also, the US dollar index (DXY) was auctioned in a balanced profile chartered in a range of 113.06-113.60. The mighty DXY displayed a sideways performance despite the rising odds of a 75 basis point (bps) rate hike by the Federal Reserve (Fed). As per CME FedWatch tool, 84.8% odds are favoring a fourth consecutive 75 bps rate hike by the Fed. Apart from that, the 10-year US Treasury yields are hovering around 3.9% after failing to cross the 4.0% hurdle.

The release of the Fed minutes on Wednesday has made it ‘loud and clear’ that bringing price stability is the foremost priority of the Fed. Despite the slowing labor market, officials are committed to standing with a ‘restrictive’ stance on interest rates. The majority of Fed policymakers believe that reaching the targeted terminal rate and sticking to it for an uncertain period of time is critical to contain the mounting price pressures.

Going forward, the US inflation data is the most important catalyst for a decisive move in the currency market. The headline US inflation may trim to 8.1%, as per the expectations. While the core CPI that doesn’t consider oil and food prices may increase to 6.5%.

On the Eurozone front, hawkish commentary from European Central Bank (ECB) President Christine Lagarde has failed to strengthen the shared currency bulls. ECB policymaker stated that the Governing Council is having discussions on Quantitative Tightening (QE) and interest rate is the most appropriate tool in current circumstances.

Technical Levels: Supports and Resistances

EURUSD currently trading at 0.9704 at the time of writing. Pair opened at 0.971 and is trading with a change of -0.06 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 0.9827, 50 SMA 0.9976, 100 SMA @ 1.0191 and 200 SMA @ 1.0602.

The previous day high was 0.9775 while the previous day low was 0.967. The daily 38.2% Fib levels comes at 0.9735, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.971, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 0.9662, 0.9614, 0.9558
• Pivot resistance is noted at 0.9766, 0.9822, 0.987

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