The index starts the new year in an erratic fashion. (Pivot Orderbook analysis)

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• The index starts the new year in an erratic fashion.
• The multi-month low at 103.39 emerges as the next support.

The pair currently trades last at 104.02.

The previous day high was 104.86 while the previous day low was 103.47. The daily 38.2% Fib levels comes at 104.33, expected to provide resistance. Similarly, the daily 61.8% fib level is at 104.0, expected to provide support.

DXY gives away most of Tuesday’s strong advance to the boundaries of the 105.00 hurdle and returns to the sub-104.00 region on Wednesday.

The index appears to have moved into a consolidative phase, although the outlook remains tilted to the downside while it remains below the key 200-day SMA at 106.25.

A deeper pullback could revisit the multi-month low at 103.39 (December 30). The loss of this region could leave the dollar vulnerable to further losses in the short-term horizon.

Technical Levels: Supports and Resistances

EURUSD currently trading at 104.02 at the time of writing. Pair opened at 104.68 and is trading with a change of -0.63 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 104.37, 50 SMA 105.53, 100 SMA @ 108.45 and 200 SMA @ 106.73.

The previous day high was 104.86 while the previous day low was 103.47. The daily 38.2% Fib levels comes at 104.33, expected to provide resistance. Similarly, the daily 61.8% fib level is at 104.0, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 103.81, 102.94, 102.42
• Pivot resistance is noted at 105.21, 105.73, 106.6

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