#EURUSD @ 1.00757 is displaying a lackluster performance below 1.0100 as investors await ECB policy. (Pivot Orderbook analysis)

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• EUR/USD is displaying a lackluster performance below 1.0100 as investors await ECB policy.
• The risk impulse is extremely positive and is favoring the shared currency bulls.
• ECB’s Lagarde may announce a rate hike of 75 bps.

The pair currently trades last at 1.00757.

The previous day high was 1.0089 while the previous day low was 0.9944. The daily 38.2% Fib levels comes at 1.0033, expected to provide support. Similarly, the daily 61.8% fib level is at 0.9999, expected to provide support.

The EUR/USD pair has extended its lackluster performance in the Tokyo session as investors are awaiting the announcement of the interest rate decision by the European Central Bank (ECB). In addition to the ECB policy, the US Gross Domestic Product (GDP) data also carries the utmost importance.

The asset is oscillating in a 1.0075-1.0094 range after a bullish Wednesday. The shared currency bulls remained in the upward trajectory led by optimism in risk impulse. The major displayed a sheer rally after overstepping the psychological hurdle of 1.0000.

Meanwhile, the US dollar index (DXY) has shifted its business below 110.00 as safe-haven’s appeal has faded completely. The 10-year US Treasury yields have tested waters below 4% cushion.

Due to the headwinds of soaring inflationary pressures and energy prices, ECB President Christine Lagarde may choose a hawkish stance on interest rates. A note from ING states that a 75 bps hike looks like a done deal but the ECB has a lot on its plate at its October meeting. Quantitative tightening talks are premature but it will seek to mop up bank liquidity.

Apart from the ECB’s monetary policy, expectations of a price cap on energy prices are trending in the Eurozone. Germany’s Economy Minister Robert Habeck said on Tuesday that they “expect the gas price mechanism decision at the next EU Council.” He further added that “Joint EU purchases are the best way to keep the gas price low,”

On the DXY front, the US GDP data is seen higher by 2.4% vs. a decline of 0.6% reported earlier. It would be worth watching the placement of the GDP figures in comparison with the projections as Monday’s PMI numbers reported by S&P were lower than expectations.

Technical Levels: Supports and Resistances

EURUSD currently trading at 1.0077 at the time of writing. Pair opened at 1.0079 and is trading with a change of -0.02 % .

The pair is trading above its 20 Daily moving average @ 0.9824, above its 50 Daily moving average @ 0.9893 , below its 100 Daily moving average @ 1.0095 and below its 200 Daily moving average @ 1.0518

The previous day high was 1.0089 while the previous day low was 0.9944. The daily 38.2% Fib levels comes at 1.0033, expected to provide support. Similarly, the daily 61.8% fib level is at 0.9999, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 0.9986, 0.9892, 0.984
• Pivot resistance is noted at 1.0131, 1.0183, 1.0276

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