#EURUSD @ 1.08469 has gone into a consolidation phase near 1.0850. (Pivot Orderbook analysis)

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• EUR/USD has gone into a consolidation phase near 1.0850.
• The risk-averse market environment and rising bond yields help USD gather strength.
• March inflation data from the US will be the next market driver.

The pair currently trades last at 1.08469.

The previous day high was 1.0924 while the previous day low was 1.0876. The daily 38.2% Fib levels comes at 1.0895, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.0906, expected to provide resistance.

EUR/USD started the new week on the back foot and touched its lowest level in a week at 1.0830 in the American session. The pair was last seen trading a few pips below 1.0850, losing 0.5% on a daily basis.

Following the three-day weekend, Wall Street’s main indexes opened in negative territory on Monday and helped the US Dollar find demand as a safe haven.

The March jobs report from the US, which showed that the Unemployment Rate declined to 3.5% with an increase of 236,000 in Nonfarm Payrolls (NFP), seems to have brought back hawkish Fed bets, providing an additional boost to USD. According to the CME Group FedWatch Tool, markets are currently pricing in a 72% probability of the Fed raising its policy rate by 25 basis points in early May.

Furthermore, the Federal Reserve Bank of New York’s monthly consumer survey revealed that the one-year inflation expectation climbed to 4.7% from 4.2% in March’s survey.

Earlier in the day, European Central Bank (ECB) policymaker Pablo Hernandez de Cos said that core inflation in the Eurozone was expected to remain elevated in the rest of the year and added that they have “ground to cover” in terms of policy. These comments, however, failed to help the Euro stay resilient against the USD.

Eurostat will release March Retail Sales data on Tuesday. More importantly, the US Bureau of Labor Statistics will publish the Consumer Price Index (CPI) data on Wednesday, which could have significant implications on the Fed’s rate outlook and the USD’s valuation.

Technical Levels: Supports and Resistances

EURUSD currently trading at 1.084 at the time of writing. Pair opened at 1.0904 and is trading with a change of -0.59 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 1.0803, 50 SMA 1.0735, 100 SMA @ 1.0679 and 200 SMA @ 1.0352.

The previous day high was 1.0924 while the previous day low was 1.0876. The daily 38.2% Fib levels comes at 1.0895, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.0906, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 1.0879, 1.0854, 1.0831
• Pivot resistance is noted at 1.0927, 1.0949, 1.0975

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