#EURUSD @ 1.06052 dived to 1.0580s on the release of the US Federal Reserve minutes. (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 dived to 1.0580s on the release of the US Federal Reserve minutes.
• FOMC: Officials do not expect to cut rates in 2023.
• FOMC: Policymakers did not express the size for further rate hikes.

The pair currently trades last at 1.06052.

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 support. Similarly, the daily 61.8% fib level is at 1.0621, expected to provide resistance.

EUR/USD holds to the 1.0600 figure after the Federal Reserve (Fed) unveiled December’s monetary policy minutes which showed that policymakers remain resolute in tackling inflation and do not expect rate cuts during 2023. Therefore, the EUR/USD dived to 1.0585 before rebounding to current exchange rates. At the time of typing, the EUR/USD is trading at around 1.0600.

The Federal Reserve’s December minutes showed that officials agreed to slow the pace of interest rate hikes but added that a slowdown is not a “weakening commitment to achieving price stability on that inflation is already on a persistent downward path.” They also added that the US central bank had made significant progress in moving to restrictive policies in 2022 and that “no one predicted that rate cuts would be necessary for 2023.”

The minutes flashed that inflation risks could be more persistent. Even though the Fed welcomed October and November drop in inflation, they do not indicate that inflation is on a “persistent downward path.”

The EUR/USD 1-hour chart showed that the shared currency edged towards the daily pivot at around 1.0580 but quickly retraced the downward move and climbed towards the 20-hour Exponential Moving Average (EMA) at around 1.0598, surpassing it towards 1.0600. Oscillators like the Relative Strength Index (RSI) persisted in bullish territory, while the Rate of Change (RoC) showed that sellers were gathering momentum. Therefore, the EUR/USD might remain range-bound within the 1.0580/1.0620 range ahead of the Wall Street close.

Technical Levels: Supports and Resistances

EURUSD currently trading at 1.06 at the time of writing. Pair opened at 1.0552 and is trading with a change of 0.45 % .

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 support. 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

[/s2If]
Join Our Telegram Group