#EURUSD @ 1.06116 US Dollar under pressure across the board amid risk appetite and falling yields. (Pivot Orderbook analysis)

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• US Dollar under pressure across the board amid risk appetite and falling yields.
• US: A weak ISM Service sector report follows larger than expected increase in NFP.
• EUR/USD having best day in a month, still down for the week.

The pair currently trades last at 1.06116.

The previous day high was 1.0632 while the previous day low was 1.0515. The daily 38.2% Fib levels comes at 1.056, expected to provide support. Similarly, the daily 61.8% fib level is at 1.0587, expected to provide support.

The EUR/USD jumped above 1.0600 amid a sharp reversal of the US Dollar that tumbled across the board following the ISM Service PMI report. The pair rose 1.25% from the daily low and is having the best day in a month.

The first leg lower of the US Dollar followed the release of the Nonfarm Payroll report. The economy added 223K in December which represents a slowdown from the prior month and shows the job market remains in good shape. The unemployment rate dropped to 3.5%.

More recently, ISM Service PMI index came in at 49.6 in December, well below the 55 of market consensus. The Price Paid Index fell unexpectedly from 70 to 67.6. The report triggered concerns about a potential “hard landing” for the US economy. At the same time, the jobs numbers keep the debate open about the next Federal Reserve rate hike by 25 or 50 basis points.

After the figures, the Greenback accelerated the decline across the board as US yields tumbled. The US 10-year yield fell from 3.75% to 3.61%, the lowest level since December 20. European yields are also sharply lower. The German 10-year bond yield fell to 2.19%, the lowest since December 19, while the Italian 1-year fell to 4.19%.

The EUR/USD peaked at 1.0613, more than a hundred pips above the one month low it hit earlier at 1.0483. Euro bulls are now looking at the 1.0635 area that is the next resistance. Ahead of the weekend the bias is bullish while above 1.0550.

Technical Levels: Supports and Resistances

EURUSD currently trading at 1.0581 at the time of writing. Pair opened at 1.052 and is trading with a change of 0.58 % .

The pair is trading below its 20 Daily moving average @ 1.0611, above its 50 Daily moving average @ 1.0396 , above its 100 Daily moving average @ 1.0144 and above its 200 Daily moving average @ 1.0316

The previous day high was 1.0632 while the previous day low was 1.0515. The daily 38.2% Fib levels comes at 1.056, expected to provide support. Similarly, the daily 61.8% fib level is at 1.0587, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 1.048, 1.0439, 1.0363
• Pivot resistance is noted at 1.0596, 1.0672, 1.0712

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