US Dollar Price Forecast: Can DXY Hold Above $102.96? Gold, GBP/USD, EUR/USD Outlook

US Dollar Strength Pressures Gold Amid Economic Data

The US dollar continues to hold steady, supported by recent economic data such as the Core PPI and PPI figures, which showed moderate inflation at 0.2% for September. This strength is limiting gold’s potential upside, as the precious metal struggles around $2,660 per ounce.

Upcoming speeches from Federal Reserve members Kashkari and Waller may provide further clues about the Fed’s future monetary policy. Gold prices typically weaken as the dollar strengthens, making it more expensive for foreign buyers.

With the U.S. bank holiday on Monday, trading volume may be lower, but market sentiment remains cautious.

US Dollar Index (DXY) – Technical Analysis

The Dollar Index (DXY) is trading at $102.99, up 0.08%, showing mild strength as it hovers above the pivot point of $102.96. Immediate resistance sits at $103.08, with further resistance at $103.18 and $103.30.

On the downside, key support levels are at $102.83 and $102.72.

The 50-day EMA at $102.91 is providing short-term support, while the 200-day EMA at $102.39 indicates the broader trend remains intact. As long as the index holds above the $102.96 pivot point, the bullish outlook persists.

However, a break below this level could shift momentum to the downside, potentially triggering a sharper selling trend. Keep an eye on $103.08 for the next possible breakout level.

Gold – Technical Analysis

Gold (XAU/USD) is trading at $2,665.56, up 0.31%, holding above the $2,661.52 pivot. Resistance lies at $2,670.56 and $2,677.72, while support sits at $2,650.43 and $2,638.10.

If gold remains above $2,662, the uptrend may continue, supported by the “three white soldiers” candlestick pattern. A break below $2,662 could trigger selling pressure.

Sterling Gains as GDP and Production Beat Forecasts

The British pound (GBP) saw modest gains after UK GDP rose by 0.2% in September, matching expectations. Manufacturing production surprised with a 1.1% rise, beating the forecast of 0.3%.

Industrial production also grew by 0.5%, exceeding the predicted 0.2%. The goods trade balance narrowed to -£15.1B, signaling improving trade conditions. Attention now turns to MPC member Dhingra’s speech.

GBP/USD Technical Analysis

GBP/USD is trading at $1.30674, up 0.02%, holding above the pivot point at $1.30613. Immediate resistance is at $1.30825, followed by $1.30958 and $1.31125.

On the downside, key support levels are $1.30417 and $1.30225. The 50-day EMA at $1.30642 is providing short-term support, while the 200-day EMA at $1.31217 suggests broader resistance ahead.

As long as the pair holds above the $1.30613 pivot point, the outlook remains bullish. However, a break below this level could lead to a sharper selling trend.

Keep an eye on the pivot level and resistance at $1.30825 for potential moves in either direction, as the market waits for stronger signals.

Euro Steady as Markets Await German Buba Speech

The Euro (EUR) remained stable after German Final CPI met expectations with no change at 0.0% for September. Investors are now closely watching the upcoming speech by Bundesbank President Nagel, which could provide insights into Germany’s economic outlook and potential monetary policy shifts.

Any hints regarding inflation or future rate hikes could influence EUR movements in the near term.

EUR/USD Technical Forecast

The EUR/USD is trading at $1.09287, down 0.06%, but holding steady near the pivot point at $1.09187. A symmetrical triangle pattern is forming, suggesting consolidation and potential for a breakout.

Immediate resistance is at $1.09391, with further resistance at $1.09522 and $1.09656. On the downside, key support levels are at $1.09059 and $1.08997.

The 50-day EMA at $1.09488 is acting as a short-term resistance, while the 200-day EMA at $1.10248 highlights a broader trend. As long as EUR/USD holds above $1.09187, a bullish continuation seems likely.