#EURUSD @ 1.07270 hits a two-month low amidst US debt-ceiling uncertainty and positive US economic data. (Pivot Orderbook analysis)
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- EUR/USD hits a two-month low amidst US debt-ceiling uncertainty and positive US economic data.
- Fitch places US “AAA” debt rating on negative watch despite lower unemployment claims and a rise in Q1 GDP.
- Germany’s Q1 GDP plunge puts additional pressure on the Euro, with central bank commentary stirring markets.
The pair currently trades last at 1.07270.
The previous day high was 1.0801 while the previous day low was 1.0748. The daily 38.2% Fib levels comes at 1.0769, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.0781, expected to provide resistance.
EUR/USD continued to fall for three straight days and reached a new two-month low of 1.0707, as the greenback remains strengthening across the FX board. Uncertainty around the US debt-ceiling discussions and upbeat US economic data bolstered the US Dollar (USD). Therefore, the EUR/USD is trading at 1.0725 after hitting a high of 1.0756.
US debt-ceiling discussions resumed on Wednesday, with US GOP House Speaker Kevin McCarthy saying that he does not expect an agreement today, tough added there has been “some progress” between both parties. Woes of a potential US default bolstered the US Dollar, though Fitch Ratings warned that US “AAA” debt ratings were put on negative watch.
On another front, data from the US Bureau of Labor Statistics (BLS) revealed that unemployment claims for the last week rose by 229K below estimates of 245K, signaling a solid labor market. At the same time, growth in the US for the first quarter was upwardly revised, revealing the BLS. Gross Domestic Product (GDP) rose by 1.3%, against the preliminary 1.1% figure, portraying a solid economy.
On the Eurozone (EU) front, the largest economy of the bloc, Germany, was in recession in Q1 as GDP plunged 0.3%, weighing on the Euro (EUR), which extended its losses from 1.0740 toward the 1.0710 area.
In the meantime, central bank speakers crossed the wires on both sides of the Atlantic. On the US front, Boston Fed President Susan Collins commented that the time to pause its tightening cycle is getting closer. On Wednesday, the Fed revealed its May minutes, showing policymakers are leaning towards pausing hikes, though officials did not commit to writing off interest rate increases.
Across the pond, the European Central Bank (ECB) member Klass Know said that “at least” two more rate hikes of 25 bps are needed in the Euro Area and stressed the need to stay put for a significant time.
Technical Levels: Supports and Resistances
EURUSD currently trading at 1.0726 at the time of writing. Pair opened at 1.075 and is trading with a change of -0.22 % .
| Overview | Overview.1 | |
|---|---|---|
| 0 | Today last price | 1.0726 |
| 1 | Today Daily Change | -0.0024 |
| 2 | Today Daily Change % | -0.2200 |
| 3 | Today daily open | 1.0750 |
The pair is trading below its 20 Daily moving average @ 1.0916, below its 50 Daily moving average @ 1.09 , below its 100 Daily moving average @ 1.0813 and above its 200 Daily moving average @ 1.0476
| Trends | Trends.1 | |
|---|---|---|
| 0 | Daily SMA20 | 1.0916 |
| 1 | Daily SMA50 | 1.0900 |
| 2 | Daily SMA100 | 1.0813 |
| 3 | Daily SMA200 | 1.0476 |
The previous day high was 1.0801 while the previous day low was 1.0748. The daily 38.2% Fib levels comes at 1.0769, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.0781, expected to provide resistance.
Note the levels of interest below:
- Pivot support is noted at 1.0731, 1.0713, 1.0678
- Pivot resistance is noted at 1.0784, 1.0819, 1.0837
| Levels | Levels.1 |
|---|---|
| Previous Daily High | 1.0801 |
| Previous Daily Low | 1.0748 |
| Previous Weekly High | 1.0904 |
| Previous Weekly Low | 1.0760 |
| Previous Monthly High | 1.1095 |
| Previous Monthly Low | 1.0788 |
| Daily Fibonacci 38.2% | 1.0769 |
| Daily Fibonacci 61.8% | 1.0781 |
| Daily Pivot Point S1 | 1.0731 |
| Daily Pivot Point S2 | 1.0713 |
| Daily Pivot Point S3 | 1.0678 |
| Daily Pivot Point R1 | 1.0784 |
| Daily Pivot Point R2 | 1.0819 |
| Daily Pivot Point R3 | 1.0837 |
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