#EURUSD @ 1.06437 picks up bids to print mild gains while extending the previous weekly recovery., @nehcap view: Limited upside expected (Pivot Orderbook analysis)

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• EUR/USD picks up bids to print mild gains while extending the previous weekly recovery.
• 100-SMA, one-month-old descending resistance line restrict immediate upside.
• Sluggish MACD signals join sustained trading below two-month-long horizontal hurdle, 200-SMA to keep bears hopeful.

The pair currently trades last at 1.06437.

The previous day high was 1.0639 while the previous day low was 1.0588. The daily 38.2% Fib levels comes at 1.0619, expected to provide support. Similarly, the daily 61.8% fib level is at 1.0608, expected to provide support.

EUR/USD rebound pokes the 100-SMA hurdle around 1.0650 heading into Monday’s European session.

The major currency pair recovered from a two-month low in the last week on broad US Dollar weakness, as well as the hawkish concerns about the European Central Bank (ECB). However, the cautious mood ahead of the top-tier catalysts from the US and Europe seems to test the momentum traders of late.

Also read: EUR/USD grinds lower towards 1.0600 ahead of Eurozone Retail Sales, focus on Fed Chair Powell, US NFP

That said, a one-month-old descending resistance line, near 1.0660 by the press time, acts as an extra filter towards the north, apart from the immediate 100-SMA hurdle of 1.0650.

It’s worth noting that the EUR/USD pair’s run-up beyond the 1.0650 hurdle isn’t an open invitation for the quote’s rally as the 200-SMA and a two-month-long horizontal resistance area could check the pair’s further upside, respectively near 1.0745 and 1.0760-65.

Should the EUR/USD pair portray another defeat from the key SMA hurdle, a one-week-old ascending support line near 1.0600 will be crucial to watch as it holds the gate for the pair’s slump toward early 2023 low near 1.0480. Adding strength to the 1.0480 support is November 2022’s top.

In a case where EUR/USD drops below 1.0480, the late November low near 1.0290 and the monthly bottom of 1.0222 will be in focus.

Overall, EUR/USD is likely to recover but the upside room remains limited.

Trend: Limited upside expected

Technical Levels: Supports and Resistances

EURUSD currently trading at 1.0645 at the time of writing. Pair opened at 1.0635 and is trading with a change of 0.09% % .

The pair is trading below its 20 Daily moving average @ 1.0663, below its 50 Daily moving average @ 1.0726 , above its 100 Daily moving average @ 1.0496 and above its 200 Daily moving average @ 1.0329

The previous day high was 1.0639 while the previous day low was 1.0588. The daily 38.2% Fib levels comes at 1.0619, expected to provide support. Similarly, the daily 61.8% fib level is at 1.0608, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 1.0603, 1.057, 1.0552
• Pivot resistance is noted at 1.0653, 1.0671, 1.0703

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