#EURUSD @ 1.09544 is making efforts for defending its 1.0950 support as USD Index has shown recovery. (Pivot Orderbook analysis)

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• EUR/USD is making efforts for defending its 1.0950 support as USD Index has shown recovery.
• Loans and advances to US businesses and consumers have dropped due to tight credit conditions by US banks.
• Citi Group is expecting a recession in the US economy in the fourth quarter.

The pair currently trades last at 1.09544.

The previous day high was 1.0984 while the previous day low was 1.0917. The daily 38.2% Fib levels comes at 1.0943, expected to provide support. Similarly, the daily 61.8% fib level is at 1.0959, expected to provide resistance.

The EUR/USD pair is expected to deliver a sheer downside below the immediate support of 1.0950 in the Asian session. The major currency pair is attracting offers as the US Dollar Index (DXY) has shown a recovery move and has scaled above the 102.00 resistance.

S&P500 futures have extended their downside in the Asian session in hopes that more rates from the Federal Reserve (Fed) could spoil revenue guidance.

The minutes from Federal Reserve’s (Fed) Beige Book indicate a steady performance in economic activities in the majority of districts. However, loans and advances to businesses and consumers have dropped due to tight credit conditions nominated by United States commercial banks to dodge uncertainty in a turbulent environment.

Meanwhile, Fed policymakers are still confident about economic prospects due to the tight labor market. St. Louis Fed President James Bullard advocated for the continuation of the policy-tightening spell by the central bank considering the fact that labor market data is still solid, as reported by Reuters. Fed policymaker further added that demand for labor has not softened yet and a strong labor market leads to strong consumption.

Considering the tight US labor market, Citi Group is expecting a recession in the US economy in the fourth quarter. Earlier, it anticipated that the US will declare recession in the third quarter of 2023.

On the Eurozone front, investors are awaiting the release of the Consumer Confidence data. Preliminary Consumer Confidence (April) data is expected to improve to -18.5 from the former release of -19.2. The reason could be consistently declining Eurozone inflation, which is receding the burden from households.

Technical Levels: Supports and Resistances

EURUSD currently trading at 1.0952 at the time of writing. Pair opened at 1.0955 and is trading with a change of -0.03 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 1.0903, 50 SMA 1.0756, 100 SMA @ 1.0728 and 200 SMA @ 1.0384.

The previous day high was 1.0984 while the previous day low was 1.0917. The daily 38.2% Fib levels comes at 1.0943, expected to provide support. Similarly, the daily 61.8% fib level is at 1.0959, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 1.092, 1.0885, 1.0853
• Pivot resistance is noted at 1.0987, 1.1019, 1.1054

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