#EURUSD @ 1.07140 holds lower ground after reversing the corrective bounce before a few hours. (Pivot Orderbook analysis)

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• EUR/USD holds lower ground after reversing the corrective bounce before a few hours.
• Both Fed and ECB policymakers appear hawkish but the strong US data, yields help USD to pare previous losses.
• Markets remain dicey amid a lack of major data/events.
• German Inflation, EU economic forecasts and US Weekly Jobless Claims eyed.

The pair currently trades last at 1.07140.

The previous day high was 1.0767 while the previous day low was 1.0669. The daily 38.2% Fib levels comes at 1.0706, expected to provide support. Similarly, the daily 61.8% fib level is at 1.0729, expected to provide resistance.

EUR/USD remains pressured around 1.0710, following a reversal from 1.0760, as bears keep the reins for the fifth consecutive day during early Thursday. In doing so, the major currency pair justifies the hawkish comments from the European Central Bank (ECB) and the Federal Reserve (Fed) policymakers. It’s worth noting that the comparatively upbeat US data than Europe seems to defend the hawkish comments from the Fed and weigh on the EUR/USD price.

That said, Federal Reserve Governor Christopher Waller teased a long fight with a 2.0% inflation target by citing expectations of tighter monetary policy for longer than expected. On the same line, Governor Lisa Cook said that the central bank remains focused on restoring price stability, as inflation is still running too high. She added that they would need a restrictive monetary policy for some time.

Furthermore, New York Federal Reserve President John Williams said that the labor market is still very strong and noted that they have more work to do on rates, adding data will determine the path of rate hikes.

Elsewhere, ECB policymaker Klaas Knot said that headline inflation appears to have peaked but added that keeping the current pace of hikes into May could well be needed if underlying inflation does not materially abate.

While a slew of Fed and ECB policymakers spoke much about defending the restrictive monetary policy, Friday’s upbeat US jobs report and activity data contrast with the comparatively lighter EU statistics to justify the Fed’s hawkish stand, which in turn exerts downside pressure on the EUR/USD price.

Additionally, a rebound in the US 10-year Treasury bond yields, after a downbeat start to Wednesday, joins Wall Street’s negative closing to weigh on the EUR/USD prices.

Moving on, preliminary readings of Germany’s Harmonized Index of Consumer Prices for January will precede the quarterly prints of European Commission releases Economic Growth Forecasts to entertain EUR/USD traders.

An 11-week-old ascending support line joins the 50-day Exponential Moving Average (EMA) to highlight 1.0670-65 as the key level for the bear’s conviction.

Technical Levels: Supports and Resistances

EURUSD currently trading at 1.0713 at the time of writing. Pair opened at 1.0725 and is trading with a change of -0.11% % .

The pair is trading below its 20 Daily moving average @ 1.0841, above its 50 Daily moving average @ 1.0693 , above its 100 Daily moving average @ 1.0335 and above its 200 Daily moving average @ 1.0321

The previous day high was 1.0767 while the previous day low was 1.0669. The daily 38.2% Fib levels comes at 1.0706, expected to provide support. Similarly, the daily 61.8% fib level is at 1.0729, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 1.0674, 1.0623, 1.0577
• Pivot resistance is noted at 1.0771, 1.0818, 1.0869

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