US Dollar Forecast: ECB Awaits Lagarde’s Speech at BRICS Summit; Gold, GBP/USD and EUR/USD Outlook

US Dollar Strengthens While Gold Eyes FOMC Events and Beige Book

The U.S. dollar continues to strengthen, driven by expectations surrounding upcoming FOMC speeches and economic data, including existing home sales and the Beige Book.

These events could impact market sentiment, with investors closely watching for any signs of monetary policy shifts.

Meanwhile, gold prices remain steady as traders await further guidance from the Federal Reserve. Volatility in both markets may increase as the day unfolds.

US Dollar Index (DXY) – Technical Analysis

The Dollar Index (DXY) is trading at 104.324, up 0.25%, signalling bullish momentum above the key pivot point of $104.17.

Immediate resistance sits at $104.36, with additional resistance levels at $104.45 and $104.55.

On the downside, support is at $104.06, with further support at $103.94 and $103.82.

The 50-day EMA at $103.81 and the 200-day EMA at $102.93 indicate a solid upward trend. A bullish engulfing pattern further strengthens the case for more gains.

However, if DXY breaks below $104.17, a sharper selling trend could emerge. Keep an eye on these key levels, shaping the index’s short-term direction.

Gold – Technical Analysis

Gold (XAU/USD) remains bullish at $2,750.21, with support at $2,738.16. Resistance is at $2,754.01, and the 50-day EMA of $2,719.07 strengthens the trend. A break below support could signal sharper declines.

Sterling Awaits Key BOE Speeches Amid IMF Meetings

Sterling (GBP) remains steady as traders anticipate key speeches from MPC member Breeden and BOE Governor Bailey. Both talks are expected to offer insights into future monetary policy, so the pound may experience heightened volatility.

These speeches, alongside ongoing IMF meetings, could provide crucial guidance for the pound’s short-term direction.

Investors will be looking for any signals on interest rate adjustments or economic outlook, which could influence market sentiment and GBP movement.

GBP/USD Technical Analysis

GBP/USD is trading at $1.29688, down 0.11%, staying just below its pivot point of $1.29915. This level is key—if the pair breaks above it, we could see a stronger bullish bias, with immediate resistance at $1.30154 and further levels at $1.30531 and $1.30770.

On the downside, immediate support is $1.29532, with additional support at $1.29276. The 50-day EMA sits at $1.30032, while the 200-day EMA at $1.30790 suggests broader resistance.

The current downward trendline reinforces bearish pressure, especially if prices stay below the pivot. Traders should watch for a break above $1.29915 for bullish momentum, but caution is warranted as the pair remains under pressure.

Euro Awaits Lagarde Speech and Key Data at BRICS Summit

The Euro (EUR) faces potential volatility as markets await ECB President Lagarde’s speech and consumer confidence data. Traders are eyeing her comments for hints on future monetary policy.

Meanwhile, the ongoing BRICS Summit and IMF meetings could also impact sentiment around the euro, especially with the German 10-year bond auction signaling economic sentiment.

Investors will watch closely for any shifts in policy outlook or economic updates from these major events today.

EUR/USD Technical Forecast

The EUR/USD is trading at $1.0783, down 0.11%, and below key technical levels. The pivot point at $1.0811 serves as a critical level for both bulls and bears. Immediate resistance stands at $1.0842, followed by $1.0873.

On the downside, immediate support is at $1.0777, with further levels at $1.0748 and $1.0716. The 50-day EMA at $1.0832 indicates a bearish sentiment, especially as prices dip below the 200-day EMA at $1.0924.

The descending triangle pattern suggests a potential downward breakout if support levels break. Stay cautious if the pair fails to reclaim $1.0811, as further selling pressure may emerge.