#EURUSD @ 1.06165 is showing a sideways performance above 1.0600 as investors are shifting their focus toward Fed policy. (Pivot Orderbook analysis)

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• EUR/USD is showing a sideways performance above 1.0600 as investors are shifting their focus toward Fed policy.
• An interest rate hike of 50 bps by the ECB has trimmed the Fed-ECB policy divergence.
• S&P500 futures showed a rampant recovery after battered banks received support.

The pair currently trades last at 1.06165.

The previous day high was 1.076 while the previous day low was 1.0516. The daily 38.2% Fib levels comes at 1.0609, expected to provide support. Similarly, the daily 61.8% fib level is at 1.0667, expected to provide resistance.

The EUR/USD pair is defending its auction above the round-level resistance of 1.0600 in the early Tokyo session. The major currency pair is looking to hold a bullish bias as the interest rate decision of 50 basis points (bps) rate hike by the European Central Bank (ECB) has trimmed the Federal Reserve (Fed)-ECB policy divergence.

On Thursday, ECB President Christine Laragde pushed interest rates to 3.50% despite discouraging headlines about banking turmoil. ECB Lagarde preferred to maintain its entire focus on the Eurozone inflation, which is extremely stubborn, and hawkish monetary policy is not showing any meaningful improvement in the battle against the former.

Also, the announcement of a fresh infusion of 50bln Swiss Francs into Credit Suisse promised by the Swiss National Bank (SNB) supported the ECB to go for a bigger rate hike.

Support from various financial institutions for the First Republic Bank after an infusion of fresh life into Credit Suisse by the SNB indicated that the mass banking crisis could be avoided. This infused a sense of optimism in investors and risk-perceived assets was heavily bought. S&P500 futures showed a rampant recovery and settled Thursday’s session with bumper gains.

Meanwhile, demand for US government bonds trimmed as investors channelized funds into US equities. The alpha offered on the 10-year US Treasury yields scaled to 3.58%.

The US Dollar Index (DXY) is displaying a sideways performance as investors are shifting their focus toward the monetary policy decision by the Fed, which will be announced next week. As per the CME FedWatch tool, the odds for a 25 basis point (bps) interest rate hike by Fed chair Jerome Powell have scaled to near 80%.

Technical Levels: Supports and Resistances

EURUSD currently trading at 1.0614 at the time of writing. Pair opened at 1.0577 and is trading with a change of 0.35 % .

The pair is trading below its 20 Daily moving average @ 1.0629, below its 50 Daily moving average @ 1.0726 , above its 100 Daily moving average @ 1.0556 and above its 200 Daily moving average @ 1.0325

The previous day high was 1.076 while the previous day low was 1.0516. The daily 38.2% Fib levels comes at 1.0609, expected to provide support. Similarly, the daily 61.8% fib level is at 1.0667, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 1.0475, 1.0374, 1.0232
• Pivot resistance is noted at 1.0719, 1.0861, 1.0963

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