#EURUSD @ 1.09531 struggles to gain ground as concerns on the debt ceiling turned sentiment sour. (Pivot Orderbook analysis)
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- EUR/USD struggles to gain ground as concerns on the debt ceiling turned sentiment sour.
- Fed and ECB officials crossed newswires, though EUR/USD traders are focused on the US dynamics.
- Upcoming data: Germany’s inflation and Italy’s industrial production for Eurozone, US CPI for April.
The pair currently trades last at 1.09531.
The previous day high was 1.1054 while the previous day low was 1.1. The daily 38.2% Fib levels comes at 1.1021, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.1033, expected to provide resistance.
The EUR/USD extends its losses on Tuesday past the 1.10 handle, briefly testing last week’s low of 1.0942, but bounced off that price level, above the 1.0950 area. Worries about the United States (US) debt ceiling, and a strong US Dollar (USD), weakened the prospects for a higher Euro (EUR). At the time of writing, the EUR/USD is trading at 1.0955, down 0.44%.
Wall Street is posting losses after the Fed’s Senior Loan Officer Opinion Survey (SLOOS) showed that credit conditions are tightening, thought “not as disastrous as many doomsayers had feared,” wrote analysts at Brown Brothers Harriman. Discussions around the US debt ceiling could heat on Tuesday, as US President Joe Biden will meet with Republicans and Democrats to lay the ground around the theme. Hence, as sentiment shifted sour, the EUR/USD surrendered the 1.1000 figure.
In the meantime, the US Dollar Index (DXY), a gauge that tracks the performance of six currencies against the US Dollar, climbs 0.29%, up at 101.680, a headwind for the EUR/USD. US Treasury bond yields are mixed, though the short term, the most sensitive to interest rates, the 2-year note gains one bps, at 4.024%.
The lack of data in the US agenda left EUR/USD traders leaning on words from the Federal Reserve (Fed) Governor Philip Jefferson. Jefferson commented that the banking system was sound and resilient and that institutions had begun to raise lending standards. Regarding inflation, it has started to slow in an “orderly fashion” and will come down as the economy continues to grow.
On the European front, the latest economic data from Germany had increased worries about a recession in the bloc. Meanwhile, European Central Bank (ECB) speakers continued their hawkish remarks, as ECB Joachim Nagel said that the central bank has not finished raising rates. Echoing some of his comments was Martins Kazaks, who commented: “We still have quite some ground to cover.”
The Eurozone economic calendar will feature Germany’s inflation data and industrial production in Italy. On the US front, the Consumer Price Index (CPI) for April is expected at 5% YoY, while the core reading at 5.5%.
Technical Levels: Supports and Resistances
EURUSD currently trading at 1.0956 at the time of writing. Pair opened at 1.1007 and is trading with a change of -0.46 % .
| Overview | Overview.1 | |
|---|---|---|
| 0 | Today last price | 1.0956 |
| 1 | Today Daily Change | -0.0051 |
| 2 | Today Daily Change % | -0.4600 |
| 3 | Today daily open | 1.1007 |
The pair is trading below its 20 Daily moving average @ 1.0997, above its 50 Daily moving average @ 1.0847 , above its 100 Daily moving average @ 1.0786 and above its 200 Daily moving average @ 1.0438
| Trends | Trends.1 | |
|---|---|---|
| 0 | Daily SMA20 | 1.0997 |
| 1 | Daily SMA50 | 1.0847 |
| 2 | Daily SMA100 | 1.0786 |
| 3 | Daily SMA200 | 1.0438 |
The previous day high was 1.1054 while the previous day low was 1.1. The daily 38.2% Fib levels comes at 1.1021, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.1033, expected to provide resistance.
Note the levels of interest below:
- Pivot support is noted at 1.0987, 1.0967, 1.0933
- Pivot resistance is noted at 1.104, 1.1074, 1.1094
| Levels | Levels.1 |
|---|---|
| Previous Daily High | 1.1054 |
| Previous Daily Low | 1.1000 |
| Previous Weekly High | 1.1092 |
| Previous Weekly Low | 1.0942 |
| Previous Monthly High | 1.1095 |
| Previous Monthly Low | 1.0788 |
| Daily Fibonacci 38.2% | 1.1021 |
| Daily Fibonacci 61.8% | 1.1033 |
| Daily Pivot Point S1 | 1.0987 |
| Daily Pivot Point S2 | 1.0967 |
| Daily Pivot Point S3 | 1.0933 |
| Daily Pivot Point R1 | 1.1040 |
| Daily Pivot Point R2 | 1.1074 |
| Daily Pivot Point R3 | 1.1094 |
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