#EURUSD @ 1.09748 is expected to show further weakness if fails to keep the auction above 1.0960. (Pivot Orderbook analysis)

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• EUR/USD is expected to show further weakness if fails to keep the auction above 1.0960.
• S&P500 surrendered gains on settlement, portraying caution among market participants ahead of the Fed’s policy.
• US Manufacturing PMI continued to remain below the 50.0 threshold consecutively for the sixth time.

The pair currently trades last at 1.09748.

The previous day high was 1.1045 while the previous day low was 1.0962. The daily 38.2% Fib levels comes at 1.0994, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.1014, expected to provide resistance.

The EUR/USD pair is hovering near the eight-day-old support of 1.0960 in the early Asian session. The major currency pair is expected to display a sheer sell-off after breaking below the same. The downside bias for the shared currency pair looks solid as the US Dollar Index (DXY) is preparing for a fresh rally above 102.20 amid the monetary policy by the Federal Reserve (Fed), which will be announced on Wednesday.

S&P500 surrendered gains in the late New York session and ended Monday with some losses, portraying caution among market participants ahead of the Fed’s interest rate policy. Investors failed to capitalize on this despite easing United States banking jitters as JP Morgan buyout First Republic Bank from US regulators.

The USD Index has recaptured two-week-old resistance of 102.20 and is expected to remain in the driving seat as Fed policymakers are preparing for one more 25 basis points (bps) interest rate hike.

Meanwhile, the US ISM Manufacturing PMI (April) remained upbeat on Monday. The Manufacturing PMI continued to remain below the 50.0 threshold consecutively for the sixth month but rebounded from the annual lowest figure to 47.1. Also, New Orders Index improved to 45.7 from the consensus of 45.5.

On the Eurozone front, weak economic growth amid higher inflation is becoming a major problem for European Central Bank (ECB) policymakers. The shared continent has recorded a growth rate of 0.1% in the first quarter lower than the consensus of 0.2%.

This week, ECB President Christine Lagarde is set to raise interest rates further, however, uncertainty is building for the pace of rate hike to be opted by the central bank.

Technical Levels: Supports and Resistances

EURUSD currently trading at 1.0974 at the time of writing. Pair opened at 1.1019 and is trading with a change of -0.41 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 1.0965, 50 SMA 1.0799, 100 SMA @ 1.0762 and 200 SMA @ 1.0414.

The previous day high was 1.1045 while the previous day low was 1.0962. The daily 38.2% Fib levels comes at 1.0994, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.1014, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 1.0973, 1.0926, 1.089
• Pivot resistance is noted at 1.1055, 1.1092, 1.1138

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