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EUR/USD, GBP/USD, DXY Forecast: DXY Gains Support Near $104.70; What’s Next?
By:
Key Points:
- German Q1 GDP steady at 0.2%, providing stability to the euro.
- UK Retail Sales dropped 2.3%, significantly pressuring the pound.
- U.S. markets closed for Memorial Day, limiting trading activity.
In this article:
Meanwhile, in the U.S., Core Durable Goods Orders increased by 0.4%, beating the expected 0.1%, and Durable Goods Orders rose by 0.7%, exceeding forecasts of a 0.9% decline.
These positive data points, along with an upward revision in the University of Michigan Consumer Sentiment to 69.1, supported the dollar.
Events Ahead
Looking ahead to Monday, May 27, market activity will be influenced by several key events. In Europe, the German Ifo Business Climate index is expected to rise to 90.4 from 89.4, potentially providing support to the euro. The Belgian NBB Business Climate is also projected to improve, rising to -10.8 from -11.9, which could further bolster the euro.
In the UK, the BRC Shop Price Index year-on-year is anticipated to come in at 0.8%, which may offer some insights into consumer price trends amidst a bank holiday. In the U.S., markets will be closed in observance of Memorial Day, limiting trading activity.
US Dollar Index (DXY)
The Dollar Index is trading at $104.712, down 0.03%. The pivot point at $104.641 is critical for market direction. Immediate resistance levels are $104.823, $104.980, and $105.125. Support levels are $104.481, $104.268, and $104.082.
Technical indicators show the 50-day Exponential Moving Average (EMA) at $104.810 and the 200-day EMA at $105.005, indicating a bearish trend as the price is below both key moving averages.
The outlook remains bullish above $104.641, but a break below this level could trigger a sharp selling trend.
EUR/USD Technical Forecast
GBP/USD is trading at $1.27412, up 0.06%. The pivot point at $1.2750 is crucial for market direction. Immediate resistance levels are $1.2793, $1.2824, and $1.2864. Support levels are $1.2718, $1.2674, and $1.2645.
Technical indicators show the 50-day Exponential Moving Average (EMA) at $1.2687 and the 200-day EMA at $1.2605, indicating a bullish trend. The current price is above both key moving averages, suggesting potential upward momentum.
The outlook is bearish below $1.2750, with a break above this level potentially boosting bullish sentiment.
For a look at all of today’s economic events, check out our economic calendar.
About the Author
Arslan Aliauthor
Arslan, a webinar speaker and derivatives analyst, has an MBA in Finance and MPhil in Behavioral Finance. He guides financial analysis, trading, and cryptocurrency forecasting. Expert in trading psychology and sentiment.
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