US Dollar Price Forecast: DXY Nears $101; GBP/USD and EUR/USD Outlook

Dollar Index Holds Steady Ahead of Key Economic Data

The Dollar Index (DXY) is trading near 100.90, holding steady as investors await critical U.S. economic data releases. Key figures, such as the S&P/CS Composite-20 HPI and CB Consumer Confidence, are due, potentially influencing market direction.

The Richmond Manufacturing Index is also expected to offer insights into economic health. Additionally, comments from FOMC Member Bowman could further impact market sentiment.

US Dollar Index (DXY) – Technical Analysis 

The Dollar Index (DXY) is trading at $100.907, down slightly by 0.01%, as it hovers near its short-term support levels. The index is currently below the pivot point of $101.049, which suggests some bearish pressure in the market.

Immediate support is at $100.730, with further support levels at $100.509 and $100.227. Resistance is found at $101.228 and climbs higher toward $101.675.

The 50-day EMA at $100.866 and the 200-day EMA at $100.950 are nearly converging, reflecting a period of consolidation.

A break above the pivot point could shift sentiment back to bullish, but if the index remains below $101.049, it may face further downside pressure in the near term.

Sterling Weakens After Disappointing PMI Data

The British pound (GBP) weakened slightly following the release of lower-than-expected Flash Manufacturing PMI at 51.5 and Flash Services PMI at 52.8. Both figures missed forecasts, raising concerns about the U.K.’s economic momentum.

Additionally, the CBI Industrial Order Expectations came in at -35, below expectations, adding to bearish sentiment for the pound.

GBP/USD Technical Forecast

The GBP/USD is trading at $1.33531, up 0.06%, showing a slight upward movement during the session. The price is holding above the 50-day EMA at $1.33204, which signals short-term bullish momentum.

Immediate resistance stands at $1.3366, with further levels at $1.34009 and $1.34424.

On the downside, immediate support is at $1.32718, followed by $1.32339 and $1.31976.

The pivot point sits at $1.33081, a key level to watch. A sustained break above this could signal continued bullish momentum, while a drop below may increase selling pressure.

Euro Dips as German Business Climate Falls Short

The euro (EUR) softened after Germany’s ifo Business Climate index dropped to 85.4, below the forecast of 86.1, signaling weakening sentiment in Europe’s largest economy.

Investors are now eyeing the Belgian NBB Business Climate data and remarks from German Buba President Nagel for further economic direction.

EUR/USD Technical Forecast

The EUR/USD pair is trading at $1.11234, up 0.04%, showing modest gains during today’s session. The price sits just above the 50-day EMA at $1.11293, signalling mild bullish momentum.

Immediate resistance is at $1.11433, with further resistance levels at $1.11760 and $1.12039.

On the downside, immediate support is found at $1.10831, followed by $1.10679 and $1.10486.

If EUR/USD stays above the pivot point of $1.11039, it could continue moving higher. However, a break below this key level could trigger sharper selling pressure.

The technical indicators suggest the pair is cautiously bullish, but traders should watch for any shifts in momentum.