#EURUSD @ 1.03234 EURUSD has rebounded from 1.0310 as ECB Lagarde promised to bring down inflation to 2%. (Pivot Orderbook analysis)

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• EURUSD has rebounded from 1.0310 as ECB Lagarde promised to bring down inflation to 2%.
• Fed Collins supported that more rate hikes are required followed by holding of restrictive monetary policy.
• ECB Lagarde cited that recession is unlikely to bring down inflation significantly.

The pair currently trades last at 1.03234.

The previous day high was 1.0396 while the previous day low was 1.032. The daily 38.2% Fib levels comes at 1.0349, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.0367, expected to provide resistance.

The EURUSD pair has picked some bids after dropping to near the critical support of 1.0310 in the early Asian session. The asset has sensed buying interest after testing Friday’s low and may focus on risk sentiment for further guidance. The risk profile doesn’t see any pressure for now and is likely to support risk-perceived currencies ahead.

On Friday, S&P500 posted decent gains as chances are not sufficient for a consecutive 75 basis point (bps) rate hike by the Federal Reserve (Fed). While headline inflation rate at 7.7% is still a major concern for the market participants. Fed Bank of Boston President Susan Collins cited last week that the US central bank has more work to do to bring inflation down, as reported by Reuters. He further added that additional increases in the federal funds rate will be required, followed by a period of holding rates at a sufficiently restrictive level for some time.”

Meanwhile, the US dollar index (DXY) has sensed barricades near the round-level resistance of 107.00 and is expected to remain on tenterhooks ahead of US Durable Goods Orders data. As per the projections, the economic data is seen stable at 0.4%.

Sustainability in the Durable Goods Orders data in times when interest rates are accelerating could create more troubles for Fed chair Jerome Powell. The Fed has been working on keeping the overall demand on a low profile to cool down inflation. This also indicates that households are resorting to higher interest obligations to address their need for durable goods.

On the Eurozone front, European Central Bank (ECB) President Christine Lagarde cleared in the European Banking Congress that the central bank is committed to bringing down medium-term inflation to 2% in a timely manner by escalating interest rates. She further added that a recession is unlikely to bring down inflation significantly.

Technical Levels: Supports and Resistances

EURUSD currently trading at 1.0325 at the time of writing. Pair opened at 1.0325 and is trading with a change of 0.0 % .

The pair is trading above its 20 Daily moving average @ 1.0079, above its 50 Daily moving average @ 0.9931 , above its 100 Daily moving average @ 1.0025 and below its 200 Daily moving average @ 1.0414

The previous day high was 1.0396 while the previous day low was 1.032. The daily 38.2% Fib levels comes at 1.0349, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.0367, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 1.0298, 1.0271, 1.0222
• Pivot resistance is noted at 1.0374, 1.0423, 1.045

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