#EURUSD @ 1.00123 is expected to deliver an upside move above 1.0050. (Pivot Orderbook analysis)

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• EUR/USD is expected to deliver an upside move above 1.0050.
• The doors of the Fed’s full percent rate hike are open amid soaring core CPI numbers.
• A decline in Eurozone Consumer Confidence could impact the shared currency bulls.

The pair currently trades last at 1.00123.

The previous day high was 1.0037 while the previous day low was 0.9945. The daily 38.2% Fib levels comes at 1.0002, expected to provide support. Similarly, the daily 61.8% fib level is at 0.998, expected to provide support.

The EUR/USD pair attempted an upside break above the three-day consolidation formed in a narrow range of 0.9950-1.0020 in the last week. The asset is expected to generate gains as a break above 1.0040 will confirm the conclusion of the inventory accumulation process. The major is displaying signs of strength despite the rising odds of a bumper rate hike announcement by the Federal Reserve (Fed).

Considering the market consensus, Fed chair Jerome Powell will push the interest rates higher to 3.25-3.50% with a third consecutive rate hike by 75 basis points (bps). As price pressures have rebounded and are not responding well to the ongoing pace of interest rates, the extent of the rate hike is open to a full percent rate hike.

In the prior, US Consumer Price Index (CPI) release, the core inflation improved dramatically to 6.3%, higher than the expectations of 6.1% and the prior release of 5.9%. Also, the US Retail Sales landed at 0.3%, higher than the expectations of 0% and the prior release of -0.4%. This indicates that a revival in the demand prospects is not caring for the price rise index, which is supporting the Fed to go conservative unhesitatingly.

On the Eurozone front, investors are awaiting the release of Thursday’s Consumer Confidence data. The economic data is seen lower at -26 against the prior release of -24.9. Consumers are upset over the inflation chaos and signs of failure by the European Central Bank (ECB) in dealing with the same. A decline in consumer confidence indicates a loss of confidence in the economy. This is the outcome of bleak growth prospects, soaring inflation, and deepening energy prices.

Technical Levels: Supports and Resistances

EURUSD currently trading at 1.0013 at the time of writing. Pair opened at 1.0017 and is trading with a change of -0.04 % .

The pair is trading above its 20 Daily moving average @ 0.9987, below its 50 Daily moving average @ 1.0098 , below its 100 Daily moving average @ 1.0318 and below its 200 Daily moving average @ 1.0731

The previous day high was 1.0037 while the previous day low was 0.9945. The daily 38.2% Fib levels comes at 1.0002, expected to provide support. Similarly, the daily 61.8% fib level is at 0.998, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 0.9963, 0.9908, 0.9871
• Pivot resistance is noted at 1.0054, 1.0091, 1.0146

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