#EURUSD @ 1.09019 buyers are on a roll at the start of the week. (Pivot Orderbook analysis)

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• EUR/USD buyers are on a roll at the start of the week.
• Hawkish ECB commentary boosts the Euro bulls, US Dollar falls.
• Holiday-thinned light trading could exaggerate the moves.

The pair currently trades last at 1.09019.

The previous day high was 1.0859 while the previous day low was 1.0802. The daily 38.2% Fib levels comes at 1.0838, expected to provide support. Similarly, the daily 61.8% fib level is at 1.0824, expected to provide support.

The Euro is keeping the upper hand against the US Dollar at the start of the week on Monday, as EUR/USD is rising above the 1.0900 level for the first time since April 2022. The currency pair is under intense buying pressure, courtesy of the hawkish comments from the European Central Bank (ECB) policymakers over the weekend.

ECB Governing Council member Klaas Knot said on Sunday, “expect us to raise rates by 0.5% in February and March and expect us to not be done by then and that more steps will follow in May and June.” His colleague Olli Rehn noted that he sees grounds for “significant interest rate increases from the ECB this winter and the coming spring.”

Meanwhile, the latest Reuters poll of economists showed that a majority of them now expect the ECB deposit rate to peak at 3.25% by the second quarter of this year, up from the previous estimates of 2.75% a month ago.

The hawkish ECB expectations combined with increased bets of a slow down in the US Federal Reserve’s (Fed) tightening pace is helping narrow the monetary policy divergence between both central banks, in turn, aiding the upside in the EUR/USD pair.

The US Dollar also remains undermined by the advance in the Japanese stocks and a positive close on Wall Street last Friday. Meanwhile, thin trading conditions are likely to extend, as many major centers in Asia are closed for Lunar New Year celebrations. Therefore, the pair remains at the risk of some volatility amid light trading and a lack of significant economic data from both sides of the Atlantic this Monday.. Although ECB President Christine Lagarde’s speech at 17:45 GMT could provide some trading incentives.

Technical Levels: Supports and Resistances

EURUSD currently trading at 1.0901 at the time of writing. Pair opened at 1.0856 and is trading with a change of 0.39 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 1.0711, 50 SMA 1.0571, 100 SMA @ 1.0232 and 200 SMA @ 1.031.

The previous day high was 1.0859 while the previous day low was 1.0802. The daily 38.2% Fib levels comes at 1.0838, expected to provide support. Similarly, the daily 61.8% fib level is at 1.0824, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 1.0819, 1.0782, 1.0762
• Pivot resistance is noted at 1.0876, 1.0896, 1.0933

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