#EURUSD @ 1.06848 has retreated after facing barricades around 1.0700 amid a recovery in the USD Index. (Pivot Orderbook analysis)
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- EUR/USD has retreated after facing barricades around 1.0700 amid a recovery in the USD Index.
- The German economy is going through a rough phase due to higher interest rates by the ECB.
- ECB Lagarde is expected to raise interest rates further considering persistence in core inflation.
The pair currently trades last at 1.06848.
The previous day high was 1.0733 while the previous day low was 1.0667. The daily 38.2% Fib levels comes at 1.0692, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.0708, expected to provide resistance.
The EUR/USD pair has witnessed some selling interest after facing stiff barricades around 1.0700 in the early European session. The major currency pair is consistently defending the crucial support of 1.0670, therefore, a breakdown of the same would result in wider bearish ticks. The Euro has come under pressure as investors are anticipating a bleak economic outlook in Eurozone.
S&P500 futures generated mild gains in the Asian session. US equities registered a positive settlement on Tuesday as more dovish catalysts are adding to Federal Reserve’s (Fed) interest rate policy filters. The US Dollar Index (DXY) has rebounded to near 104.18. On a broader note, the USD Index is inside the woods amid a lack of economic events this week.
The demand for US government bonds has improved amid a mild decline in hawkish Fed bets. As per the CME FedWatch tool, more than 80% of the chances are in favor of a steady interest rate policy. This has led to a decline in the 10-year US Treasury yields to near 3.66%.
On the Eurozone front, the German economy is going through a rough phase due to higher interest rates by the European Central Bank (ECB). The German economy has already shown a recession after a consecutive contraction in quarterly Gross Domestic Product (GDP). Adding to that, German Factory orders are consistently declining, indicating weak demand.
Apart from that, Eurozone Retail Sales data released on Tuesday also failed to stand expectations. Monthly Retail Sales remained stagnant while the street was anticipating an expansion by 0.2%. Annual Retail Sales contracted by 2.6% vs. the expectations of -1.8%. In spite of the poor economic outlook, ECB President Christine Lagarde is highly likely to raise interest rates further considering persistence in core inflation.
Technical Levels: Supports and Resistances
EURUSD currently trading at 1.0685 at the time of writing. Pair opened at 1.0693 and is trading with a change of -0.07 % .
| Overview | Overview.1 | |
|---|---|---|
| 0 | Today last price | 1.0685 |
| 1 | Today Daily Change | -0.0008 |
| 2 | Today Daily Change % | -0.0700 |
| 3 | Today daily open | 1.0693 |
The pair is trading below its 20 Daily moving average @ 1.0784, below its 50 Daily moving average @ 1.0892 , below its 100 Daily moving average @ 1.0811 and above its 200 Daily moving average @ 1.0509
| Trends | Trends.1 | |
|---|---|---|
| 0 | Daily SMA20 | 1.0784 |
| 1 | Daily SMA50 | 1.0892 |
| 2 | Daily SMA100 | 1.0811 |
| 3 | Daily SMA200 | 1.0509 |
The previous day high was 1.0733 while the previous day low was 1.0667. The daily 38.2% Fib levels comes at 1.0692, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.0708, expected to provide resistance.
Note the levels of interest below:
- Pivot support is noted at 1.0662, 1.0632, 1.0596
- Pivot resistance is noted at 1.0728, 1.0763, 1.0794
| Levels | Levels.1 |
|---|---|
| Previous Daily High | 1.0733 |
| Previous Daily Low | 1.0667 |
| Previous Weekly High | 1.0779 |
| Previous Weekly Low | 1.0635 |
| Previous Monthly High | 1.1092 |
| Previous Monthly Low | 1.0635 |
| Daily Fibonacci 38.2% | 1.0692 |
| Daily Fibonacci 61.8% | 1.0708 |
| Daily Pivot Point S1 | 1.0662 |
| Daily Pivot Point S2 | 1.0632 |
| Daily Pivot Point S3 | 1.0596 |
| Daily Pivot Point R1 | 1.0728 |
| Daily Pivot Point R2 | 1.0763 |
| Daily Pivot Point R3 | 1.0794 |
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