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EUR/USD, GBP/USD, DXY Price Forecast: DXY Steady at $105.85; Sales Data Ahead
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Key Points:
- US Consumer Confidence Index at 100.4, slightly above forecast, down from previous 101.3.
- EUR/USD at $1.06865, down 0.04%, pressured by a stronger dollar and economic data.
- GBP/USD stable at $1.26705, awaiting UK’s CBI Realized Sales and US New Home Sales data.
In this article:
On Tuesday, the US Consumer Confidence Index came in at 100.4, slightly above the forecast of 100.0 but down from the previous 101.3. This mixed data did little to bolster the Dollar Index (DXY), which remains steady at 105.848.
Meanwhile, the EUR/USD pair continued to face pressure, trading at 1.06865, down 0.04%, influenced by the stronger dollar. The GBP/USD also held its ground, trading at 1.26705, with minimal movement as traders awaited further economic indicators.
Events Ahead
Looking ahead, the market is gearing up for critical data releases. At 6:00 AM, the German GfK Consumer Climate Index is expected to show a slight improvement to -21.8 from the previous -21.0.
At 10:00 AM, the UK’s CBI Realized Sales figures are projected to drop to 1 from 8, which could impact GBP/USD. Later in the day, at 2:00 PM, the US New Home Sales data is forecasted at 636K, a slight increase from the previous 634K, which could influence the Dollar Index.
The Dollar Index is trading at $105.848, down 0.03%. On the 4-hour chart, the pivot point is at $105.729, indicating a critical level for market direction. Immediate resistance levels are $105.915, $106.076, and $106.220. Immediate support is at $105.598, with further support at $105.434 and $105.263.
The 50-day EMA is at $105.479, and the 200-day EMA is at $105.119, suggesting close support levels.
The outlook remains bullish above the pivot point of $105.729. However, a break below this level could trigger a sharp selling trend, shifting the market bias.
EUR/USD Technical Forecast
GBP/USD is trading at $1.26705, up 0.00%. The 4-hour chart shows a pivot point at $1.26895, indicating a key level for market direction. Immediate resistance levels are $1.27127, $1.27324, and $1.27532.
Immediate support is at $1.26668, with further support at $1.26451 and $1.26210. The 50-day EMA is at $1.26911, and the 200-day EMA is at $1.26883, suggesting close resistance levels.
Overall, GBP/USD remains bearish below the pivot point of $1.26895. A break above this level could shift the bias towards a bullish trend, while staying below it may continue the selling pressure.
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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