#EURUSD @ 1.06722 is marching towards 1.0700 amid a sell-off in the USD index. (Pivot Orderbook analysis)
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- EUR/USD is marching towards 1.0700 amid a sell-off in the USD index.
- S&P500 remained in a bearish trajectory amid a cautious market mood ahead of the US Employment data.
- The collective efforts of softening inflation in Germany, Spain, and France would also impact Eurozone inflationary pressures.
The pair currently trades last at 1.06722.
The previous day high was 1.0747 while the previous day low was 1.0672. The daily 38.2% Fib levels comes at 1.0718, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.0701, expected to provide resistance.
The EUR/USD pair is marching towards the round-level resistance of 1.0700 in the early Toyo session. The major currency pair showed a sharp recovery from 1.0640 on Wednesday after the US Dollar Index (DXY) faced intense selling pressure post refreshing a 10-week high at 104.70. The USD Index has dropped to near 104.23 and is looking vulnerable above the immediate support.
S&P500 remained in a bearish trajectory on Wednesday amid a cautious market mood ahead of the United States Employment data. Investors are worried that healthy US labor conditions would strengthen the odds of one more interest rate hike from the Federal Reserve (Fed), which could push the US economy further toward a recession.
US JOLTS Job Openings data beat estimates with a decent margin. The economic data landed at 10.103M, higher than the estimates of 9.375M and the former release of 9.745M. Kathy Jones, chief fixed income strategist at Charles Schwab, said in a tweet that job openings numbers indicate that “the job market is still healthy.”
On Wednesday, Cleveland Federal Reserve Bank President, Loretta Mester, in an interview with Financial Times, cited “I don’t really see a compelling reason to pause — meaning wait until you get more evidence to decide what to do.”
Meanwhile, the Euro showed an impressive recovery despite a sheer slowdown in German inflation. The preliminary German Harmonized Index of Consumer Prices (HICP) surprisingly softened to 6.3% vs. the estimates of 6.8% and the former release of 7.6%. Monthly HICP showed a deflation of 0.2% which infused confidence among European Central Bank (ECB) policymakers that the restrictive monetary policy is dignifying its job effectively.
Investors should note that inflationary pressures in Spain and France have also softened well than expectations, which indicates that the preliminary Eurozone HICP will also show a decent pace of decline.
However, ECB President Christine Lagarde has already cleared that more interest rate hikes are in the pipeline to contain stubborn Eurozone inflation.
Technical Levels: Supports and Resistances
EURUSD currently trading at 1.0687 at the time of writing. Pair opened at 1.0734 and is trading with a change of -0.44 % .
| Overview | Overview.1 | |
|---|---|---|
| 0 | Today last price | 1.0687 |
| 1 | Today Daily Change | -0.0047 |
| 2 | Today Daily Change % | -0.4400 |
| 3 | Today daily open | 1.0734 |
The pair is trading below its 20 Daily moving average @ 1.0859, below its 50 Daily moving average @ 1.0903 , below its 100 Daily moving average @ 1.0816 and above its 200 Daily moving average @ 1.049
| Trends | Trends.1 | |
|---|---|---|
| 0 | Daily SMA20 | 1.0859 |
| 1 | Daily SMA50 | 1.0903 |
| 2 | Daily SMA100 | 1.0816 |
| 3 | Daily SMA200 | 1.0490 |
The previous day high was 1.0747 while the previous day low was 1.0672. The daily 38.2% Fib levels comes at 1.0718, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.0701, expected to provide resistance.
Note the levels of interest below:
- Pivot support is noted at 1.0689, 1.0644, 1.0615
- Pivot resistance is noted at 1.0763, 1.0792, 1.0837
| Levels | Levels.1 |
|---|---|
| Previous Daily High | 1.0747 |
| Previous Daily Low | 1.0672 |
| Previous Weekly High | 1.0831 |
| Previous Weekly Low | 1.0702 |
| Previous Monthly High | 1.1095 |
| Previous Monthly Low | 1.0788 |
| Daily Fibonacci 38.2% | 1.0718 |
| Daily Fibonacci 61.8% | 1.0701 |
| Daily Pivot Point S1 | 1.0689 |
| Daily Pivot Point S2 | 1.0644 |
| Daily Pivot Point S3 | 1.0615 |
| Daily Pivot Point R1 | 1.0763 |
| Daily Pivot Point R2 | 1.0792 |
| Daily Pivot Point R3 | 1.0837 |
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