#EURUSD @ 1.09764 gains ground near 1.0983 despite the firmer USD. (Pivot Orderbook analysis)

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• EUR/USD gains ground near 1.0983 despite the firmer USD.
• ECB’s Lagarde said interest rates in the eurozone had reached their peak, but she didn’t provide the timeline for a possible cut to borrowing costs.
• US Consumer Price Index (CPI) for December rose 3.4% YoY vs. 3.1% prior, stronger than expected.
• The US Producer Price Index (PPI) on Friday will be closely monitored by traders.

The pair currently trades last at 1.09764.

The previous day high was 1.1004 while the previous day low was 1.093. The daily 38.2% Fib levels comes at 1.0976, expected to provide support. Similarly, the daily 61.8% fib level is at 1.0958, expected to provide support.

The EUR/USD pair holds positive ground despite renewed US dollar (USD) demand during the early Asian session on Friday. The uptick of the major pair is supported by the risk-on environment ahead of the US key data. At press time, EUR/USD is trading at 1.0983, gaining 0.11% on the day.

The Labor Department revealed on Thursday that the US Initial Jobless Claims for the week ending January 6 reached the lowest level since mid-October, declining by 1,000 to 202,000 from the previous week’s revised reading of 203,000.

Furthermore, the US Consumer Price Index (CPI) for December grew 3.4% YoY from the previous reading of 3.1%, above the market consensus of 3.2%. The Core CPI, which excludes volatile food and energy prices, climbed 3.9% YoY in December, stronger than the expectation of 3.8%. Traders anticipate that the FOMC will delay a rate cut as both inflation and labor market data did not support it. According to the CME Group’s FedWatch tools, the market is pricing in 64% odds of a March rate cut, slightly lower than last week.

The European Central Bank (ECB) President Christine Lagarde said on Thursday that the ‘hardest part was likely over and interest rates would be cut if the ECB had the certainty that inflation had fallen to the 2% level. Lagarde added that interest rates in the eurozone had reached their peak after rising rapidly in response to high inflation last year. Traders have priced in at least five rate cuts in 2024, with the first move beginning in March or April.

Later on Friday, the Consumer Price Index (CPI) from France and Spain will be released, and ECB Philip Lane is set to speak. On the US docket, the Producer Price Index (PPI) will be released, which is forecast to show an increase of 1.3% YoY in December.

Technical Levels: Supports and Resistances

EURUSD currently trading at 1.098 at the time of writing. Pair opened at 1.0972 and is trading with a change of 0.07 % .

The pair is trading below its 20 Daily moving average @ 1.0981, above its 50 Daily moving average @ 1.0893 , above its 100 Daily moving average @ 1.0766 and above its 200 Daily moving average @ 1.0848

The previous day high was 1.1004 while the previous day low was 1.093. The daily 38.2% Fib levels comes at 1.0976, expected to provide support. Similarly, the daily 61.8% fib level is at 1.0958, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 1.0933, 1.0895, 1.086
• Pivot resistance is noted at 1.1007, 1.1042, 1.108

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