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EUR/USD, GBP/USD, DXY Price Forecast: DXY at $105.022, Euro Support Weakens
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Key Points:
- Germany's Trade Balance exceeded expectations at 24.9 billion EUR, supporting the euro temporarily.
- US Consumer Credit m/m rose to 11.4 billion USD, boosting the dollar's strength.
- The Sentix Investor Confidence for the Eurozone fell to -7.3, below the expected 0.3.
In this article:
However, the Sentix Investor Confidence for the Eurozone dropped to -7.3, missing the expected 0.3. In the UK, MPC Member Haskel spoke, although details of the speech’s impact on the market were limited.
Over in the US, Consumer Credit m/m increased to 11.4 billion USD, surpassing the expected 9.7 billion USD and previous 6.5 billion USD.
The stronger German Trade Balance provided some support, but weak investor confidence weighed on the euro. Whereas, the robust US Consumer Credit figures bolstered the dollar, reflecting in the Dollar Index (DXY), currently at $105.022.
Events Ahead
Looking ahead to Tuesday, July 9, at 10:00, the USD NFIB Small Business Index is expected, with a forecast of 90.3, slightly below the previous 90.5. This will be followed by several key speeches, including FOMC Member Barr at 13:15, Fed Chair Powell at 14:00, and Treasury Secretary Yellen. Additionally, FOMC Member Bowman will speak at 17:30.
The Dollar Index will also be closely watched, as any signs of economic strength or policy changes could further influence its trajectory.
The U.S. Dollar Index (DXY) is currently priced at $105.022 on the 2-hour chart. The pivot point is positioned at $104.907. Immediate resistance levels are set at $105.140, followed by $105.331 and $105.520.
On the downside, immediate support is found at $104.907, with further support levels at $104.774 and $104.642. The 50-day EMA is positioned at $105.173, while the 200-day EMA stands at $105.370.
A downward channel breakout around the $104.907 level on the 2-hour timeframe suggests a potential buying trend.
EUR/USD Technical Forecast
The GBP/USD is currently priced at $1.28079 on the 2-hour chart. The pivot point is positioned at $1.28177. Immediate resistance levels are at $1.28396, $1.28565, and $1.28771.
On the downside, immediate support is found at $1.27843, with further support at $1.27591 and $1.27343. The 50-day EMA is at $1.27674, while the 200-day EMA stands at $1.27147.
The outlook for GBP/USD suggests a bearish trend below the pivot point of $1.28177. If prices remain above this level, there could be potential for bullish momentum. However, a drop below the pivot point reinforces a sell position.
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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