#EURUSD @ 1.05548 is smashed by a solid rebound in the US Dollar on Tuesday. (Pivot Orderbook analysis)

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• EUR/USD is smashed by a solid rebound in the US Dollar on Tuesday.
• Risk-on profile, weak Treasury yields fail to deter US Dollar bulls.
• EUR/USD is teasing a symmetrical triangle breakdown on the daily chart.

The pair currently trades last at 1.05548.

The previous day high was 1.071 while the previous day low was 1.0651. The daily 38.2% Fib levels comes at 1.0673, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.0687, expected to provide resistance.

EUR/USD is heavily sold off below 1.0600, correcting sharply from two-week highs above 1.0700. The sharp upswing in the US Dollar across the board is smashing the Euro, despite the upbeat market environment.

As markets return from the long New Year weekend, they prefer to seek safety in the US Dollar ahead of the key economic events from the US this week. The first relevant US economic data will be released on Tuesday, the S&P Global Manufacturing PMI. Although the Fed December meeting minutes and Nonfarm Payrolls will hold the key.

The recent hawkish comments from European Central Bank policymaker Joachim Nagel also fail to offer any support to the Euro, as EUR/USD sheds 0.90% to trade at 1.0570, at the time of writing. The pair also shrugs off the sluggish performance in the US Treasury bond yields, as the US Dollar demand dominates.

Meanwhile, an unexpected improvement in the German labor market is doing little to please Euro bulls. Germany’s Unemployment Rate dipped to 5.5% in December while the Unemployment Change dropped by 13K vs. expectations of +15K in the reported period. All eyes now turn toward the German inflation data for fresh trading impetus.

EUR/USD has breached the rising trendline support at 1.0630, with a daily closing below it awaited to confirm a symmetrical triangle breakdown.

Further down, the pair has also taken out the critical 21-Daily Moving Average (DMA) support at 1.0601, exposing the 1.0500 round level.

The 14-day Relative Strength Index (RSI) has dipped sharply toward the 50.00 level from around 70.00, justifying the latest downtick.

On the other side, EUR/USD needs to recapture the 21DMA support-turned-resistance to attempt a tepid bounce. Further up, the triangle support now resistance will come into play.

Technical Levels: Supports and Resistances

EURUSD currently trading at 1.0555 at the time of writing. Pair opened at 1.0666 and is trading with a change of -0.92 % .

The pair is trading below its 20 Daily moving average @ 1.0604, above its 50 Daily moving average @ 1.0363 , above its 100 Daily moving average @ 1.0131 and above its 200 Daily moving average @ 1.0324

The previous day high was 1.071 while the previous day low was 1.0651. The daily 38.2% Fib levels comes at 1.0673, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.0687, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 1.0641, 1.0616, 1.0582
• Pivot resistance is noted at 1.07, 1.0734, 1.0759

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