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EUR/USD, GBP/USD, DXY Price Forecast: Awaiting US GDP, Job Claims for Market Clarity
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Key Points:
- German retail contraction and GBP's mixed signals reflect complex economic landscapes in Europe.
- US economic data including GDP, Unemployment Claims, and Chicago PMI to influence USD strength.
- EUR/USD and GBP/USD face critical junctures amid US data releases and European economic indicators.
Additionally, the Chicago PMI and Pending Home Sales, along with the Revised University of Michigan Consumer Sentiment and Inflation Expectations, are set to provide further insights into the US economic landscape.
For the EUR, upcoming figures on German Unemployment Change and the Eurozone’s M3 Money Supply and Private Loans will offer fresh clues on the health of the European economy.
US Dollar Index (DXY)
The Dollar Index experienced a slight downturn, registering at 104.370, demonstrating a minimal decrease of 0.07%. Currently, the index hovers just below the crucial pivot point of 104.496, suggesting a potentially volatile trading environment.
Resistance levels are mapped out at 104.736, 104.978, and an upper echelon at 105.248. Conversely, foundational support lies at 104.187, with further layers at 103.989 and 103.675. The proximity of the 50-day and 200-day Exponential Moving Averages at 104.032 and 103.730 respectively underscores the index’s bullish momentum.
However, its position beneath a notable double-top resistance hints at a decisive moment for traders: a bullish breakout above 104.496 could propel further gains, while failure to surpass this threshold may invite a bearish reversal.
EUR/USD Technical Forecast
The EUR/USD pair slightly declined by 0.07%, positioning at 1.08207. Presently, the currency duo is navigating below a critical pivot of 1.0835, suggesting a cautious bearish sentiment in the market. Resistance points are identified at 1.0855, 1.0872, and 1.0888, indicating potential barriers to upward momentum.
On the downside, support levels are established at 1.0802, 1.0783, and 1.0761, which may offer a buffer against further declines. The 50-day and 200-day Exponential Moving Averages, sitting at 1.08481 and 1.08561 respectively, align closely, hinting at a tight trading range.
A movement above the pivot could signify a shift towards a bullish outlook, while staying below it maintains a bearish perspective.
GBP/USD Technical Forecast
The GBP/USD pair is experiencing a slight downturn, shedding 0.10% to stand at 1.26279. It currently trades beneath the pivotal 1.2649 mark, suggesting a lean towards bearish sentiment. Resistance levels loom at 1.2694, 1.2748, and 1.2805, potentially capping any bullish attempts.
Support is established at 1.2577, with further floors at 1.2536 and 1.2502, ready to counter dips. The proximity of the 50-day and 200-day Exponential Moving Averages, at 1.2665 and 1.2686 respectively, indicates a tight battle between bears and bulls.
A decisive move above the pivot may shift momentum towards bullish territory, while remaining below could reinforce bearish trends.
For a look at all of today’s economic events, check out our economic calendar.
About the Author
Arslan Aliauthor
Arslan is a finance MBA and also holds an MPhil degree in behavioral finance. An expert in financial analysis and investor psychology, Arslan uses his academic background to bring valuable insights about market sentiment and whether instruments are likely to be overbought or oversold.
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