#EURUSD @ 0.98603 bulls attack five-week-old resistance while taking rounds to fortnight high. (Pivot Orderbook analysis)

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• EUR/USD bulls attack five-week-old resistance while taking rounds to fortnight high.
• US dollar traces subdued yields amid firmer sentiment, mixed data.
• EU/German ZEW numbers were upbeat for October, European Commission proposed ‘dynamic cap’ to gas price.
• Final readings of EU inflation, second-tier US housing data to entertain traders.

The pair currently trades last at 0.98603.

The previous day high was 0.9852 while the previous day low was 0.972. The daily 38.2% Fib levels comes at 0.9802, expected to provide support. Similarly, the daily 61.8% fib level is at 0.9771, expected to provide support.

EUR/USD bulls take a breather around an important resistance as it seesaws near 0.9860-65 during Wednesday’s Asian session. That said, the major currency pair refreshed a two-week high of 0.9875 as a risk-on mood and sluggish yields weighed on the US dollar the previous day.

US Dollar Index (DXY) remains mildly offered near the lowest levels since October 06 during the second loss-making day on Tuesday. In doing so, the greenback’s gauge versus the six major currencies traced the sluggish Treasury yields amid the risk-on mood.

However, firmer US Industrial Production for September and softer NAHB Housing Market Index for October, respectively around 0.4% MoM and 38 versus the market expectations of 0.1% and 43 in that order, pushed back the bears during the later hours of the day.

At home, the German ZEW Economic Sentiment Index improved to -59.2 for October versus forecast of -65.7 and -61.9 previous. Further, the same gauge for Eurozone stood at -59.7 for the said period as compared to the -60.6 expected and -60.7 previous reading.

The risk profile remains rosy as equities cheered the absence of the UK’s market collapse, even if the political plays are fishy in Britain. Also likely to have gained little response is the European Commission’s (EC) proposal to purchase gas in bulk and cap the prices in case of extreme volatility. Amid these plays, the US 10-year Treasury yields remained sidelined around the 4.0% threshold.

Looking forward, final readings of September inflation data for the bloc, expected to confirm the initial 10.0% figure, as per the HICP figure, could entertain the EUR/USD traders ahead of the US Building Permits and Housing Starts.

Above all, risk catalysts will be more important for the pair traders to watch for fresh impulses amid a lack of major data and the US dollar’s pullback from the multi-day high.

The first daily closing beyond the 21-DMA, around 0.9775 by the press time, keeps EUR/USD buyers hopeful of overcoming the immediate trend line hurdle surrounding 0.9860-65, which in turn could propel the quote towards the 50-DMA resistance of 0.9925.

Technical Levels: Supports and Resistances

EURUSD currently trading at 0.9862 at the time of writing. Pair opened at 0.9839 and is trading with a change of 0.23% % .

The pair is trading above its 20 Daily moving average @ 0.9778, below its 50 Daily moving average @ 0.9941 , below its 100 Daily moving average @ 1.0152 and below its 200 Daily moving average @ 1.0571

The previous day high was 0.9852 while the previous day low was 0.972. The daily 38.2% Fib levels comes at 0.9802, expected to provide support. Similarly, the daily 61.8% fib level is at 0.9771, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 0.9756, 0.9672, 0.9624
• Pivot resistance is noted at 0.9888, 0.9936, 1.002

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