#EURUSD @ 1.05677 is rebounding toward 1.0600 amid a broad US Dollar retreat. (Pivot Orderbook analysis)

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• EUR/USD is rebounding toward 1.0600 amid a broad US Dollar retreat.
• Hawkish ECB-speak power the Euro amid weak US Treasury yields.
• EUR/USD is not out of the woods yet amid a symmetrical triangle breakdown.

The pair currently trades last at 1.05677.

The previous day high was 1.0684 while the previous day low was 1.052. The daily 38.2% Fib levels comes at 1.0582, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.0621, expected to provide resistance.

EUR/USD is attempting a minor recovery toward 1.0600 early Wednesday, as the US Dollar reverses its recovery amid the return of risk flows.

The US Dollar drops in tandem with the US Treasury yields, as investors reposition themselves ahead of the US ISM Manufacturing PMI and Fed Minutes due later this Wednesday.

The major also remains underpinned by the recent hawkish comments from the European Central Bank (ECB) policymakers. ECB policymaker Joachim Nagel said on Monday that the central bank needs to take further action to curb inflation expectations. Meanwhile, ECB official Martin Kazaks said that they will have significant rate increases at the February and March meetings.

The EUR/USD pair tumbled on Tuesday after the US Dollar capitalized on risk-off flows while softer German inflation data smashed the euro area peripheral yields, sending the Euro sharply lower.

EUR/USD yielded a daily closing below the rising trendline support, then at 1.0630, validating a symmetrical triangle breakdown.

Therefore, risks remain skewed to the downside for the pair, despite the latest uptick. If the rebound gathers traction, EUR/USD needs to recapture the 21-Daily Moving Average (DMA) support-turned-resistance at 1.0605. Bulls will then aim for the triangle support now resistance at 1.0635 on the road to recovery.

The 14-day Relative Strength Index (RSI) has recovered slightly while defending the 50.00 level, backing the latest leg up in the main currency pair.

However, if sellers manage to fight back control, the pair will go for a retest of the previous day’s low at 1.0519. Ahead of that, the 1.0550 psychological level could come to the rescue of buyers.

The triangle breakdown keeps the downside open toward the 1.0420 pattern target over the coming weeks.

Technical Levels: Supports and Resistances

EURUSD currently trading at 1.057 at the time of writing. Pair opened at 1.0552 and is trading with a change of 0.16 % .

The pair is trading below its 20 Daily moving average @ 1.0608, above its 50 Daily moving average @ 1.0375 , above its 100 Daily moving average @ 1.0135 and above its 200 Daily moving average @ 1.0321

The previous day high was 1.0684 while the previous day low was 1.052. The daily 38.2% Fib levels comes at 1.0582, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.0621, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 1.0486, 1.0421, 1.0322
• Pivot resistance is noted at 1.065, 1.0749, 1.0814

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