#EURUSD @ 1.07008 has demonstrated a V-shape recovery post a sell-off in the USD Index. (Pivot Orderbook analysis)
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- EUR/USD has demonstrated a V-shape recovery post a sell-off in the USD Index.
- Eurozone’s economic turmoil is attracting downgrades from credit rating agencies.
- ECB Schnabel cited the impact of our tighter monetary policy on inflation is expected to peak in 2024.
The pair currently trades last at 1.07008.
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 support. Similarly, the daily 61.8% fib level is at 1.0708, expected to provide resistance.
The EUR/USD pair has shown a V-shape recovery move after finding a cushion at 1.0670 in the European session. The major currency pair has rebounded above 1.0700 amid a sheer sell-off in the US Dollar Index (DXY). The upside in the USD Index seems capped as investors are not confident about one more interest rate hike announcement from the Federal Reserve (Fed).
S&P500 futures are holding nominal losses in London. US equities witnessed decent buying interest on Tuesday. It seems that investors are turning cautious, however, the overall market mood is cheerful.
Considering the strength in the downside move shown by the US Dollar Index (DXY), the 104.00 support could be broken. As per the CME Fedwatch tool, more than 73% chances are in favor of a pause announcement by the Fed for June policy.
The reason behind the higher odds for an unchanged interest rate policy is the poor economic prospects of the United States economy. US factory activity has registered seven straight monthly contractions and the service sector is managing to defend the contraction phase with lots of difficulties. Therefore, expectations of a bleak economic outlook could be dried by pausing the policy-tightening spell for a while.
In the Eurozone, economic turmoil is attracting downgrades from credit rating agencies. The largest economy of Eurozone- Germany is going through a recession amid contracting Gross Domestic Product (GDP) figures for the last two quarterly amid poor factory activity. A situation of weak activities in times of high inflation is painting a rosy picture for the shared continent.
About inflation guidance, European Central Bank (ECB) Governing Council member Isabelle Schnabel said, “The impact of our tighter monetary policy on inflation is expected to peak in 2024.” In the meantime, more interest rate hikes are expected from ECB President Christine Lagarde.
Technical Levels: Supports and Resistances
EURUSD currently trading at 1.0696 at the time of writing. Pair opened at 1.0693 and is trading with a change of 0.03 % .
| Overview | Overview.1 | |
|---|---|---|
| 0 | Today last price | 1.0696 |
| 1 | Today Daily Change | 0.0003 |
| 2 | Today Daily Change % | 0.0300 |
| 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 support. 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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