#EURUSD @ 1.05597 dropped to freh multi-week low on Tuesday. (Pivot Orderbook analysis)

…
This is a premium post.
[s2If !current_user_can(access_s2member_level4)]Please register for PREMIUM VERSION HERE to read full post below containing analysis. In case of any error or you think you are not able to read the full post below, please email us at support#nehcap.com [lwa][/s2If] [s2If current_user_can(access_s2member_level4)]

• EUR/USD dropped to freh multi-week low on Tuesday.
• Annual CPI in Germany declined to 8.6% in December.
• Wall Street’s main indexes look to open in positive territory.

The pair currently trades last at 1.05597.

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 declined sharply in the early European session and touched its lowest level in three weeks at 1.0520 before staging a modest rebound. As of writing, the pair was trading at 1.0560, where it was still down nearly 1% on a daily basis.

The renewed US Dollar strength earlier in the day weighed heavily on EUR/USD. The risk-positive market environment, however, helped the pair limit its losses for the time being. At the time of press, US stock index futures were up between 0.4% and 0.8% on the day, pointing to a positive opening in Wall Street’s main indexes.

In the meantime, the data from Germany revealed on Tuesday that inflation, as measured by the Consumer Price Index (CPI), declined to 8.6% on a yearly basis in December from 10% in November. This reading came in below the market expectation of 9% and made it difficult for the Euro to gather recovery momentum.

S&P Global’s December Manufacturing PMI will be the only data featured in the US economic docket and it is expected to come in at 46.2, matching the flash estimate. The US Dollar’s valuation is likely to continue to drive EUR/USD’s action in the second half of the day with American investors returning from the three-day weekend.

Technical Levels: Supports and Resistances

EURUSD currently trading at 1.0556 at the time of writing. Pair opened at 1.0666 and is trading with a change of -1.03 % .

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

[/s2If]
Join Our Telegram Group