#EURUSD @ 0.98436 has displayed a mild correction amid a marginal DXY recovery. (Pivot Orderbook analysis)

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• EUR/USD has displayed a mild correction amid a marginal DXY recovery.
• The risk-on profile is intact as S&P500 futures are stuck to their extended gains.
• ECB Lagarde may announce a rate hike by 75 bps to curtail price pressures.

The pair currently trades last at 0.98436.

The previous day high was 0.9876 while the previous day low was 0.9813. The daily 38.2% Fib levels comes at 0.9852, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.9837, expected to provide support.

The EUR/USD pair has witnessed selling pressure after multiple failed attempts of overstepping the critical hurdle of 0.9880. The asset has not turned bearish yet as the risk profile is extremely cheerful. This could be merely a healthy correction in the asset’s upside journey.

S&P500 futures have extended their gains after an upbeat Tuesday, which indicates that the market mood is solid. Meanwhile, the US dollar index (DXY) is defending the downside bias and holding itself above 112.00. The 10-year US Treasury yields have accelerated above 4.02%.

The euro bulls are expected to turn traction toward the north amid soaring bets for European Central Bank (ECB)’s hawkish monetary policy. Reuters poll on ECB’s rate hike extent states that ECB President Christine Lagarde will step up the interest rates by 75 basis points (bps) on October 27. European Harmonized Index of Consumer Prices (HICP) trades five times higher than the targeted rate of 2%. Therefore, efficiency in policy tightening is required to contain mounting inflation.

The outcome of a Reuters poll states that the bloc’s central bank will take the deposit rate to 1.50% and the refinancing rate to 2.00%.

On the US docket, recession fears are accelerating as the Federal Reserve (Fed) is preparing to announce one more bumper rate hike in the first week of November. Price pressures have not softened in response to the pace of the Fed’s rate hiking spell. And, Fed’s foremost agenda is to bring price stability.

Going forward, Wednesday’s Housing Starts data that reflects retail demand for real estate will hog the limelight. The economic data is expected to decline to 1.475M against the former release of 1.575M. It seems that accelerating interest rates by the Federal Reserve (Fed) have started displaying their consequences. Higher interest rates are forcing retailers to postpone their demand for personal property.

Technical Levels: Supports and Resistances

EURUSD currently trading at 0.985 at the time of writing. Pair opened at 0.9855 and is trading with a change of -0.05 % .

The pair is trading above its 20 Daily moving average @ 0.9772, below its 50 Daily moving average @ 0.9934 , below its 100 Daily moving average @ 1.0144 and below its 200 Daily moving average @ 1.0563

The previous day high was 0.9876 while the previous day low was 0.9813. The daily 38.2% Fib levels comes at 0.9852, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.9837, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 0.982, 0.9785, 0.9757
• Pivot resistance is noted at 0.9883, 0.9911, 0.9946

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