The Dollar’s rebound from 145.15 remains limited below 146.00. (Pivot Orderbook analysis)

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• The Dollar’s rebound from 145.15 remains limited below 146.00.
• The market has turned cautious ahead of the results of US elections and CPI data.
• USDJPY is risking further decline to 142.00 – SocGen.

The pair currently trades last at 146.33.

The previous day high was 146.94 while the previous day low was 145.31. The daily 38.2% Fib levels comes at 145.93, expected to provide support. Similarly, the daily 61.8% fib level is at 146.31, expected to provide support.

The US Dollar’s recovery from two-week lows at the 145.15 area lost momentum at 146.55 earlier on Wednesday, before pulling back to levels right above 146.00. The pair remains moderately bid on daily charts, trimming losses after a 1.85% decline over the previous three days.

Investors have turned cautious on Wednesday, which has favored the safe-haven US Dollar amid the uncertainty about the results of the US mid-term elections. The Republican “red wave” has not been seen, and both parties are in a tight race to decide the control of Congress and the fate of Joe Biden’s agenda for 2023.

In the absence of key macroeconomic events, the highlights of the week will be the release of US consumer inflation data. These figures might offer some insight into the Federal Reserve’s next monetary policy decision which could generate significant Dollar volatility.

Earlier today, Richmond Fed President, Richard Barkin, warned that the inflation fight “might lead to a downturn” as the central bank’s rate hikes are challenged by artificial elements such as “high consumer savings and lack of labor supply”. These comments might have put a lid on USD bulls.

FX analysts at Société Générale warn about the risk of a pullback to 142 or lower: “Projections near 142 and the lower band of the daily channel at 140.30/139.40 are important support levels near term. Defending this channel could highlight continuation in uptrend (…) Once the pair reclaims the peak of 152, one more leg of up move is not ruled out. In this scenario, 153.50 and 1990 levels near 160 could be the next potential resistances.”

Technical Levels: Supports and Resistances

EURUSD currently trading at 146.33 at the time of writing. Pair opened at 145.63 and is trading with a change of 0.48 % .

The pair is trading below its 20 Daily moving average @ 147.88, above its 50 Daily moving average @ 145.25 , above its 100 Daily moving average @ 140.57 and above its 200 Daily moving average @ 132.33

The previous day high was 146.94 while the previous day low was 145.31. The daily 38.2% Fib levels comes at 145.93, expected to provide support. Similarly, the daily 61.8% fib level is at 146.31, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 144.98, 144.33, 143.35
• Pivot resistance is noted at 146.61, 147.58, 148.23

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