#EURUSD @ 1.10391 picks up bids to refresh intraday high, extends Friday’s rebound towards multi-month high marked late April. (Pivot Orderbook analysis)
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- EUR/USD picks up bids to refresh intraday high, extends Friday’s rebound towards multi-month high marked late April.
- US Dollar bears the burden of mixed jobs report, mixed feelings about US debt ceiling and bank crisis.
- Hawkish ECB rate hike contrasts with Fed’s dovish rate lift to propel Euro price.
- ECB’s Knot, Fed’s Bullard praise higher rates, highlighting the importance of US inflation figures.
The pair currently trades last at 1.10391.
The previous day high was 1.1048 while the previous day low was 1.0967. The daily 38.2% Fib levels comes at 1.1017, expected to provide support. Similarly, the daily 61.8% fib level is at 1.0998, expected to provide support.
EUR/USD bulls keep the reins around 1.1040 as it renews intraday high during a sluggish start to the key week, rising 0.15% on a day heading into Monday’s European session. The Euro pair’s latest gains could be linked to the hawkish comments from a European Central Bank (ECB) official, as well as the US Dollar’s broad weakness amid mixed sentiment.
During the weekend, Dutch Central Bank President and ECB board member Klaas Knot said, “ECB interest rate hikes are starting to have an effect, but more will be needed to contain inflation.” On the same line, ECB Governing Council member and Bank of France head Francois Villeroy de Galhau said on Friday that there will likely be several more hikes.
It should be noted that the US Dollar Index (DXY) marks one more attempt to break a three-week-old ascending support line as it drops 0.13% to 101.15 by the press time. The greenback’s latest weakness could be linked to the downward revision of the US Nonfarm Payrolls (NFP), even if the upbeat headline numbers allowed St. Louis Federal Reserve President James Bullard to reiterate bullish bias.
Furthermore, hopes that the US policymakers will be able to tackle looming default fears, ahead of Tuesday’s meeting of US President Joe Biden with the White House with Republican House Speaker Kevin McCarthy, Republican Senate Minority Leader Mitch McConnell and top congressional Democrats to discuss the debt ceiling issue. It’s worth noting that US Treasury Secretary Janet Yellen on Sunday issued a stark warning that a failure by Congress to act on the debt ceiling could trigger a “constitutional crisis” that also would call into question the federal government’s creditworthiness, per Reuters.
Elsewhere, recently the upbeat performance of US tech giants joined the mixed feelings surrounding the US banking sector to weigh on the US Dollar amid downbeat Treasury bond yields.
That said, the S&P 500 Futures print mild losses near 4,147 after posting a stellar run-up on Friday whereas the US 10-year Treasury bond yields dropped 1.5 basis points (bps) to 3.43%, pressured for the third consecutive week.
Looking ahead, inflation data from Germany and the US will join the likely European Union (EU) sanctions on China, due to its alleged role in the Russia-Ukraine war, which will direct immediate EUR/USD moves. Also important to watch will be banking updates and debt ceiling discussions amid a comparatively light Eurozone calendar.
EUR/USD trades successfully above the 21-DMA support, near 1.0990 by the press time, which in turn joins bullish MACD signals and upbeat RSI (14) line to direct the Euro bulls towards an upward-sloping resistance line from mid-April, near 1.1115 at the latest.
Technical Levels: Supports and Resistances
EURUSD currently trading at 1.1037 at the time of writing. Pair opened at 1.102 and is trading with a change of 0.15% % .
| Overview | Overview.1 | |
|---|---|---|
| 0 | Today last price | 1.1037 |
| 1 | Today Daily Change | 0.0017 |
| 2 | Today Daily Change % | 0.15% |
| 3 | Today daily open | 1.102 |
The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 1.0989, 50 SMA 1.0839, 100 SMA @ 1.0782 and 200 SMA @ 1.0434.
| Trends | Trends.1 | |
|---|---|---|
| 0 | Daily SMA20 | 1.0989 |
| 1 | Daily SMA50 | 1.0839 |
| 2 | Daily SMA100 | 1.0782 |
| 3 | Daily SMA200 | 1.0434 |
The previous day high was 1.1048 while the previous day low was 1.0967. The daily 38.2% Fib levels comes at 1.1017, expected to provide support. Similarly, the daily 61.8% fib level is at 1.0998, expected to provide support.
Note the levels of interest below:
- Pivot support is noted at 1.0975, 1.0931, 1.0894
- Pivot resistance is noted at 1.1056, 1.1093, 1.1137
| Levels | Levels.1 |
|---|---|
| Previous Daily High | 1.1048 |
| Previous Daily Low | 1.0967 |
| Previous Weekly High | 1.1092 |
| Previous Weekly Low | 1.0942 |
| Previous Monthly High | 1.1095 |
| Previous Monthly Low | 1.0788 |
| Daily Fibonacci 38.2% | 1.1017 |
| Daily Fibonacci 61.8% | 1.0998 |
| Daily Pivot Point S1 | 1.0975 |
| Daily Pivot Point S2 | 1.0931 |
| Daily Pivot Point S3 | 1.0894 |
| Daily Pivot Point R1 | 1.1056 |
| Daily Pivot Point R2 | 1.1093 |
| Daily Pivot Point R3 | 1.1137 |
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