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EUR/USD, GBP/USD, DXY Price Forecast: DXY Brace for US CPI and FOMC
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Key Points:
- EUR/USD steadies at 1.0852, with eyes on U.S. CPI figures and Italian Retail Sales data.
- GBP/USD shows slight gain at 1.2681; RICS House Price Balance to impact the pound.
- Dollar Index near pivot at 104.20; U.S. inflation data critical for future rate decisions.
In this article:
The Dollar Index slightly declined to 104.199, reflecting a minimal 0.01% decrease. It hovers around the 104.20 pivot, hinting at indecision. Key resistances at 104.45, 104.78, and 105.09 might cap upside movements.
Support lies at 103.89, 103.55, and 103.20, where potential rebounds could occur. With the 50-day and 200-day EMAs closely aligned at 103.88 and 103.81 respectively, the index presents a consolidated view.
The market’s stance is bearish below the 104.20 mark, yet surpassing this could indicate a bullish shift, making the current level critical for future direction.
EUR/USD Technical Forecast
The EUR/USD steadied at 1.0852, slightly down. With the pivot at 1.0839, resistance lies at 1.0885 and 1.0939, hinting at potential upward movements. Support is set at 1.0800, with further dips possibly testing 1.0762.
The pair shows a cautious outlook, hinging on key levels of 1.0844 and 1.0819 from the 50 and 200-day EMAs, respectively.
A firm stance above 1.0844 could signal a bullish trend, while falling below could prompt significant sell-offs, reflecting the nuanced balance in market sentiment.
GBP/USD Technical Forecast
The GBP/USD edged up to 1.2681, marking a modest 0.03% increase. The pair’s resilience around the 1.2664 pivot point suggests potential for further gains, with resistance levels awaiting at 1.2710, 1.2750, and 1.2802.
On the downside, supports are established at 1.2593, 1.2540, and 1.2502, areas where buying interest could reemerge. The currency remains buoyed above its 50-day EMA at 1.2642 and slightly above the 200-day EMA at 1.2662, indicating a cautiously optimistic outlook.
The market stance is bullish as long as it maintains above 1.2664, but a dip below this threshold could precipitate a sharper selling pressure.
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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