US Dollar Price Forecast: DXY Slips to $100.70; GBP/USD and EUR/USD Outlook

US Dollar Index Falls Amid Weak Economic Data

The US Dollar Index (DXY) dipped to 100.699, reflecting weak economic data. Import prices fell by 0.3%, missing expectations of -0.2%, while preliminary University of Michigan Consumer Sentiment inched up to 69.0, slightly above the forecast of 68.3.

However, inflation expectations remained at 2.7%, indicating persistent inflation concerns.

Looking ahead, the Empire State Manufacturing Index is projected to remain in negative territory at -4.1. The Dollar Index continues to face pressure as weaker economic data weighs on sentiment.

US Dollar Index (DXY) – Technical Analysis 

The Dollar Index (DXY) is trading at $100.699, down 0.27%, indicating a bearish bias as it remains below the pivot point of $100.981. Immediate support lies at $100.520, with deeper levels at $100.288 and $100.075, suggesting room for further downside if selling pressure persists.

Resistance sits at $101.352, followed by $101.637, which could be key levels for a potential reversal. The 50-day EMA at $101.337 adds resistance, while the 200-day EMA at $102.044 reinforces the bearish outlook.

Traders should watch for a break above $100.981 to shift sentiment toward a more bullish stance, while staying below this level keeps the bearish trend intact.

Sterling Steady Ahead of UK CPI Data Release

The British pound is holding steady as traders await key inflation data. The UK’s Consumer Price Index (CPI) for the year is expected to remain unchanged at 2.2%, signaling persistent inflationary pressures.

A reading in line with expectations could suggest that the Bank of England’s current monetary policy is maintaining price stability, but any surprise in the data could trigger volatility in the sterling.

GBP/USD Technical Forecast

The GBP/USD is trading at $1.31686, up 0.26%, maintaining a bullish stance above its pivot point at $1.31496. Immediate resistance is at $1.31841, with further levels at $1.32187 and $1.32619.

A break above these resistance levels could push the pair higher.

On the downside, immediate support is at $1.31107, followed by $1.30596. The 50-day EMA at $1.31126 provides crucial support, with the 200-day EMA at $1.30295 serving as a deeper support level.

The bullish trend remains intact above $1.31496, but a break below this pivot could trigger a sharp selling trend.

Euro Struggles as Industrial Production Declines

The euro faces downward pressure following weak economic data. French final CPI rose 0.5% in August, slightly below the expected 0.6%. More concerning, industrial production in the eurozone fell by 0.3%, deeper than the forecasted decline of 0.0%, reflecting weakness in the region’s manufacturing sector.

Looking ahead, the Italian trade balance for September is expected to come in at €4.45B, with the overall eurozone trade balance anticipated at €14.9B, down from €17.5B.

As economic uncertainty persists, the euro remains under pressure, with traders awaiting upcoming trade data to assess the region’s economic stability.

EUR/USD Technical Forecast

The EUR/USD is trading at $1.11143, up 0.26%, and showing strong bullish momentum. The pair is currently holding above its pivot point at $1.10963, with immediate resistance at $1.11211 and further levels at $1.11512 and $1.11905.

A break above these resistance levels could drive further upside.

On the downside, key support lies at $1.10710, followed by $1.10452. The 50-day EMA at $1.10651 and 200-day EMA at $1.10240 provide additional support, reinforcing the bullish trend.

However, if EUR/USD breaks below the pivot point at $1.10963, it could trigger a sharp selling trend.