#EURUSD @ 1.09783 US Dollar strengthens on Friday after US data and Fed talk. (Pivot Orderbook analysis)

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• US Dollar strengthens on Friday after US data and Fed talk.
• EUR/USD drops 80 pips from top, but holds firm to weekly gains.

The pair currently trades last at 1.09783.

The previous day high was 1.1068 while the previous day low was 1.0977. The daily 38.2% Fib levels comes at 1.1033, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.1011, expected to provide resistance.

The EUR/USD is losing ground on Friday as the US Dollar recovers a part of recent losses. The pair reached a fresh daily low at 1.0987 moving away from the one-year lows it hit on European hours at 1.1075.

The US Dollar Index (DXY) is up by 0.50% on Friday, hovering around 101.50 following mixed US economic data. Comments from Federal Reserve officials and higher US yields helped the Dollar.

Fed Governor Christopher Waller said that the central bank has not made much progress on the inflation goal and argued rates need to rise further. In an interview with CNBC, Chicago Fed President Austan Goolsbee mentioned that “a mild recession is definitively on the table as a possibility.”

Economic data came in mixed, with lower-than-expected numbers from Retail Sales, but Industrial Production and University of Michigan’s Consumer Sentiment rose more than expected.

Following data and comments, US yields jumped. The 2-year Treasury yield rose from under 4% to 4.10% and the 10-year from 3.45% to 3.52%. Eurozone bond yields are also rising but at a slower pace.

Despite Friday’s reversal, EUR/USD is still on its way to the highest weekly close in a year. It is holding up, however, the retreat from the highs raises doubts about more gains for the next session.

Price is hovering around daily lows at 1.0990. The next support area is seen at 1.0970 followed by 1.0935. On the upside, 1.1040 could become the immediate resistance.

Technical Levels: Supports and Resistances

EURUSD currently trading at 1.0989 at the time of writing. Pair opened at 1.1047 and is trading with a change of -0.53 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 1.0861, 50 SMA 1.0739, 100 SMA @ 1.0704 and 200 SMA @ 1.0366.

The previous day high was 1.1068 while the previous day low was 1.0977. The daily 38.2% Fib levels comes at 1.1033, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.1011, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 1.0993, 1.0939, 1.0902
• Pivot resistance is noted at 1.1084, 1.1121, 1.1175

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