#EURUSD @ 1.09916 has corrected marginally after failing to hit the psychological resistance of 1.1000. (Pivot Orderbook analysis)

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• EUR/USD has corrected marginally after failing to hit the psychological resistance of 1.1000.
• The upbeat performance in US PMI, released by S&P, indicates that economic recovery in the US economy is well on track.
• The Fed is expected to hike interest rates further to continue to weigh on stubborn inflation.

The pair currently trades last at 1.09916.

The previous day high was 1.0994 while the previous day low was 1.0938. The daily 38.2% Fib levels comes at 1.0972, expected to provide support. Similarly, the daily 61.8% fib level is at 1.0959, expected to provide support.

The EUR/USD pair has failed to test the psychological resistance of 1.1000 in the Tokyo session. The major currency pair has dropped below 1.0990 as the US Dollar Index (DXY) has shown a recovery move after defending the crucial support of 101.63. The recovery move in the USD Index is required to pass plenty of filters to make investors confident about its recovery.

S&P500 futures have extended their losses in early Asia ahead of quarterly results from tech giants, portraying negative market sentiment. This week, Amazon, Facebook, and Google will report their first quarter CY2023 results, which will keep investors busy.

April’s preliminary United States S&P PMI data released on Friday bolstered the need for one more rate hike from the Federal Reserve (Fed). The Manufacturing PMI jumped to 50.4 from the consensus of 49.0 and the former release of 49.2. The figure landed above 50.0 for the first time in the past six months. Also, the preliminary Services PMI jumped to 53.7 from the estimates of 51.5 and the former release of 52.6.

Upbeat performance from Manufacturing and Services PMI indicates that economic recovery in the US economy is well on track and labor demand could rebound dramatically. Therefore, one more rate hike from the Fed is highly required to keep weighing on the stubborn inflation.

On the Eurozone front, the European Union is preparing for a ban on many goods passing through Russia. The idea is to weak funding for Russia to get arms and ammunition against Ukraine.

European Central Bank (ECB) Vice President Luis de Guindos cited on Friday, “I’m convinced that core inflation will also come down, but starting point is very high.”

Technical Levels: Supports and Resistances

EURUSD currently trading at 1.0995 at the time of writing. Pair opened at 1.0986 and is trading with a change of 0.08 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 1.0921, 50 SMA 1.0767, 100 SMA @ 1.0736 and 200 SMA @ 1.0393.

The previous day high was 1.0994 while the previous day low was 1.0938. The daily 38.2% Fib levels comes at 1.0972, expected to provide support. Similarly, the daily 61.8% fib level is at 1.0959, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 1.0952, 1.0917, 1.0896
• Pivot resistance is noted at 1.1007, 1.1028, 1.1063

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