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EUR/USD, GBP/USD, DXY Price Forecast: Fed’s 5.50% Rate to Shape Markets
By:
Key Points:
- GBP faces downturn with a 0.4% drop in Nationwide HPI, reflecting UK housing market struggles.
- Anticipated drop in ADP Employment may soften USD, influencing EUR/USD exchange dynamics.
- Fed's rate decision remains at 5.50%, pivotal for future monetary policy and currency valuations.
In this article:
The day concludes with significant U.S. events including the Federal Reserve’s decision on interest rates, expected to remain at 5.50%, and the Fed’s comprehensive press conference which could herald shifts in monetary policy outlook.
US Dollar Index (DXY)
The Dollar Index today registers a modest rise, trading at 106.402, marking an increase of 0.12%. Currently, it floats slightly above its pivot point set at 106.207, suggesting mild bullish undercurrents in the near term. The index encounters its first significant resistance at 106.536, with further hurdles at 106.871 and 107.266. These levels will test the dollar’s strength in upcoming sessions.
Support for the index begins at 105.927, extending to 105.537 and 105.214, which could play a crucial role in cushioning any downward movements. The 50-Day and 200-Day Exponential Moving Averages, at 105.90 and 105.16 respectively, underscore a generally bullish trend but highlight possible volatility. The Dollar Index exhibits a bullish stance above its pivot, but surpassing 106.536 is crucial for sustaining upward momentum.
EUR/USD Technical Forecast
GBP/USD Technical Forecast
Today, the GBP/USD pair is trading at 1.24851, marking a decrease of 0.15%. It remains below the critical pivot point of 1.25198, indicating a bearish sentiment in the near term. The pair encounters immediate resistance at 1.25786, with subsequent thresholds at 1.26401 and 1.27087 that need to be surpassed to signal a stronger upward trend.
Conversely, support is established at 1.24669, with further safety nets at 1.24163 and 1.23656. Breaking below these levels could lead to a sharper decline. The 50-Day and 200-Day Exponential Moving Averages, at 1.24894 and 1.25486 respectively, suggest the pair is hovering near a key transitional zone.
The GBP/USD pair exhibits a bearish stance below its pivot point, with potential for a bullish shift if it sustains above 1.24669.
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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