#EURUSD @ 0.98364 is oscillating around 0.9840, weakness seems favored after hawkish Fed policy. (Pivot Orderbook analysis)

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• EUR/USD is oscillating around 0.9840, weakness seems favored after hawkish Fed policy.
• A mixed performance is expected on the US PMI front while Eurozone PMI will slip further.
• ECB’s economic bulletin sees a growth rate in 2022 at 3.1%.

The pair currently trades last at 0.98364.

The previous day high was 0.9976 while the previous day low was 0.9813. The daily 38.2% Fib levels comes at 0.9876, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.9914, expected to provide resistance.

The EUR/USD pair has turned sideways around 0.9840 after rebounding from near the critical support of 0.9813 in the early Tokyo session. A rebound move after multiple tests of Wednesday’s low indicates the strength of the support. It will be worth watching how far the asset can plunge after surrendering the above-mentioned support.

The impact of the harsh-than-predicted tone adopted by the Federal Reserve (Fed) chair Jerome Powell while guiding over the peak of interest rates is going to stay for a tad longer period. An escalation in interest rate projections by a whooping difference from 3.8% to 4.6% is sufficient to accelerate volatility in the economy. For achieving price stability in the economy, the rate hikes will result in a loss of job opportunities, demand for housing and durable goods, and growth rate projections.

Going forwards, the release of the S&P Global PMI data will remain in focus. The Manufacturing PMI is seen lower at 51.1 vs. the prior release of 51.5. While the Services PMI will improve to 45.0 against the prior print of 43.7.

On the Eurozone front, escalating fears of a nuclear attack by Russian leader Vladimir Putin are forcing the market veterans to extend the downside targets for the shared currency bulls. Apart from that, the release of the European Central Bank (ECB)’s Economic Bulletin sees the economy to grow by 3.1% in 2022, 0.9% in 2023, and 1.9% in 2024.

The Eurozone Manufacturing PMI is expected to land at 48.7, lower than the prior release of 49.6. Also, the Services PMI will shift lower to 49.0 vs. the former figure of 49.6.

Technical Levels: Supports and Resistances

EURUSD currently trading at 0.9837 at the time of writing. Pair opened at 0.9837 and is trading with a change of 0.0 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 0.9985, 50 SMA 1.0091, 100 SMA @ 1.0299 and 200 SMA @ 1.0711.

The previous day high was 0.9976 while the previous day low was 0.9813. The daily 38.2% Fib levels comes at 0.9876, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.9914, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 0.9775, 0.9713, 0.9612
• Pivot resistance is noted at 0.9938, 1.0039, 1.0101

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