#EURUSD @ 0.98512 The euro picks up and returns to levels above 0.9800. (Pivot Orderbook analysis)

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• The euro picks up and returns to levels above 0.9800.
• Speculation about a shorter Fed hike in December has hit the USD.
• EUR/USD seen declining to 0.9300 in Q1 2023 – Nordea.

The pair currently trades last at 0.98512.

The previous day high was 0.9846 while the previous day low was 0.9755. The daily 38.2% Fib levels comes at 0.9811, expected to provide support. Similarly, the daily 61.8% fib level is at 0.9789, expected to provide support.

The euro has shrugged off the previous sessions’ weakness during Friday’s US trading. The pair has regained lost ground after bouncing at 0.9705 lows earlier today and is struggling to consolidate above 0.9800 at the moment of writing.

A news report by the Wall Street Journal pointed out on Friday that Federal Reserve officials are likely to open a debate on how to signal a smaller rate hike in December. The US dollar has reacted with a sharp reversal from session highs.

The US Dollar index, which measures the value of the US dollar against a basket of the world’s most traded currencies, has plummeted more than 1%, from three-week highs near 114.00, to the mid-range of 112.00.

WSJ’s report has offset the positive impact on the US dollar generated by the hawkish tone of the Fed officials’ recent comments. Philadelphia Fed President Patrick Harker reiterated on Thursday that the bank will “keep raising rates for a while.”

Beyond that, initial jobless claims increased below expectations last week, according to data released on Thursday, confirming the tight labor market conditions and paving the path for the Fed to maintain its aggressive tightening cycle.

Currency analysts at Nordea expect the euro to continue depreciating to hit 0.9300 in 2023: “We believe the USD will continue to do well in the months to come due to the hawkish Fed conducting the fastest rate hikes in decades, a resilient US economy, and USD’s safe haven in these troubling times. This will bring EUR/USD to 0.93 during Q1.”

Technical Levels: Supports and Resistances

EURUSD currently trading at 0.9802 at the time of writing. Pair opened at 0.9787 and is trading with a change of 0.15 % .

The pair is trading above its 20 Daily moving average @ 0.9767, below its 50 Daily moving average @ 0.9913 , below its 100 Daily moving average @ 1.0125 and below its 200 Daily moving average @ 1.0547

The previous day high was 0.9846 while the previous day low was 0.9755. The daily 38.2% Fib levels comes at 0.9811, expected to provide support. Similarly, the daily 61.8% fib level is at 0.9789, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 0.9746, 0.9705, 0.9655
• Pivot resistance is noted at 0.9837, 0.9887, 0.9928

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