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EUR/USD, GBP/USD, DXY Price Forecast: DXY Breaks $104.50; More Gains Ahead?
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Key Points:
- EUR/USD hovers around 1.1040 after mixed economic data from the Eurozone.
- German Prelim CPI rose 0.3%, Spanish Flash GDP met expectations at 0.8%.
- US consumer confidence expected to dip to 99.7, JOLTS job openings at 8.02 million.
In this article:
During the early European session, the Euro faced some pressure following French consumer spending data, which fell by 0.5%, and Spanish Flash CPI, which came in at 2.8%, below expectations. However, French Flash GDP held steady at 0.3%, providing some stability.
The German Prelim CPI showed a modest rise of 0.3%, aligning with forecasts, while the Spanish Flash GDP met expectations at 0.8%. These mixed results have led to a cautious approach among traders, with the EUR/USD hovering around 1.1040.
Events Ahead
Looking ahead, Italian and German Prelim GDP data are expected, with forecasts of 0.2% and 0.1% growth, respectively. A broader Prelim Flash GDP for the Eurozone is anticipated at 0.2%. These figures will be critical for the Euro’s short-term outlook.
Additionally, bond auctions in Italy and the UK will provide insights into investor confidence, with the Italian 10-year bond yield currently at 4.01% and the UK’s at 4.07%.
In the US, consumer confidence data is expected to show a slight dip to 99.7, while job openings (JOLTS) are projected at 8.02 million. The Dollar Index, currently around 102.50, may see volatility based on these outcomes.
If consumer confidence and job openings fall short of expectations, we might see pressure on the USD, which could benefit both the EUR/USD and GBP/USD pairs.
Technical indicators show the 50-day Exponential Moving Average (EMA) at $104.401 and the 200-day EMA at $104.718. The outlook remains bullish above $104.561. A break below this level could drive a sharp selling trend while maintaining above suggests continued bullish momentum.
EUR/USD Technical Forecast
On the 4-hour chart, EUR/USD is trading at $1.08199, slightly up by 0.03%. The pivot point is at $1.08300, serving as a critical resistance level. Immediate resistance is found at $1.08706, with further resistance at $1.08961 and $1.09216. On the downside, immediate support is located at $1.08040, followed by $1.07797 and $1.07529.
Technical indicators show the 50-day Exponential Moving Average (EMA) at $1.08541 and the 200-day EMA at $1.08289. The outlook remains bearish below $1.08300.
GBP/USD Technical Forecast
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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