#EURUSD @ 0.97583 The euro bounces up from the 0.9740 area to approach 0.9800. (Pivot Orderbook analysis)

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• The euro bounces up from the 0.9740 area to approach 0.9800.
• The greenback lost steam on the back of weak services activity data.
• EUR/USD seen at 0.93 in 12 months – Danske Bank.

The pair currently trades last at 0.97583.

The previous day high was 0.9976 while the previous day low was 0.9813. The daily 38.2% Fib levels comes at 0.9875, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.9914, expected to provide resistance.

The euro has trimmed losses on Thursday’s US trading session, bouncing up from the 0.9740 area to reach 0.9795. The pair, however, remains negative on the daily chart and trading nearly 3% down on the week.

Business activity in the US services sector expanded at a slower pace than expected in October, according to the ISM PMI, which has declined to 54.4 from 56.7 in September, beyond the 55.5 expected by the market.

Beyond that, the employment gauge has dropped to 49.1, entering levels consistent with a contraction, from 53.0 in the previous month while the new orders sub-index retreated to 56.5 from 60.6, revealing the uncertainty in the economic conditions.

These figures have weighed moderately on a hitherto strong dollar, which has been rallying across the board following Wednesday’s Federal Reserve’s monetary policy decision.

The Fed hiked rates by 0.75% for the fourth consecutive time, as widely expected, and suggested that interest rates might peak at higher levels than markets had expected. Fed President Powell’s hawkish comments dampened expectations of a dovish pivot in December and boosted the dollar and US Treasury bonds.

Currency analysts Danske Bank see the pair on the defensive amid the Fed’s hawkish stance, and point out to a 0.93 target: “Markets took the FOMC statement dovishly, but the move faded during the press conference and EUR/USD declined below pre-meeting levels while 2y UST yield rose around 6 bps. We maintain our forecast for EUR/USD at 0.93 in 12M.”

Technical Levels: Supports and Resistances

EURUSD currently trading at 0.9769 at the time of writing. Pair opened at 0.9818 and is trading with a change of -0.5 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 0.9835, 50 SMA 0.9883, 100 SMA @ 1.0066 and 200 SMA @ 1.0483.

The previous day high was 0.9976 while the previous day low was 0.9813. The daily 38.2% Fib levels comes at 0.9875, 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 0.9762, 0.9706, 0.9599
• Pivot resistance is noted at 0.9925, 1.0032, 1.0089

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