US Dollar Price Forecast: Services PMI in Focus; Gold, EUR/USD, and GBP/USD Outlook

US Dollar Gains as Gold Slips Amid Strong US Data

The US dollar strengthened after the ADP Non-Farm Employment Change showed 143,000 new jobs added in September, surpassing the forecast of 124,000. This upbeat labor data put pressure on gold as the precious metal dipped below its recent highs.

Investors are now focused on upcoming US economic indicators, including Unemployment Claims and the ISM Services PMI, which could further influence the dollar’s momentum and gold prices.

Any signs of sustained economic strength may reduce safe-haven demand for gold, reinforcing the dollar’s gains and keeping gold under pressure in the short term.

US Dollar Index (DXY) – Technical Analysis

The Dollar Index (DXY) trades at $101.813, up 0.18%, indicating mild bullish momentum. It’s holding above its pivot point at $101.862, suggesting potential for further upside.

Immediate resistance is $102.124, with additional barriers at $102.351 and $102.542.

On the downside, support levels to watch are $101.596 and $101.349. The 50-day EMA at $101.398 and the 200-day EMA at $100.990 provide strong support for the ongoing bullish trend.

If the index remains above $101.50, it could see more buying interest. However, a break below this level could shift sentiment, triggering sharper selling pressure.

Gold – Technical Analysis 

Gold (XAU/USD) is trading at $2,653.07, down 0.10% for the session, hovering near its pivot of $2,655.20.

Resistance levels are at $2,663.22, $2,668.47, and $2,674.13, while support stands at $2,645.48, $2,641.51, and $2,634.63.

The 50-day EMA at $2,654.08 is immediate resistance, with the 200-day EMA at $2,640.08 as key support.

Sterling Holds Steady After Services PMI Data

The British pound traded flat after the Final Services PMI came in at 52.4, slightly below expectations of 52.8. The softer reading suggests slower growth in the UK services sector, keeping traders cautious amid ongoing economic uncertainty and potential Bank of England policy adjustments.

GBP/USD Technical Forecast

The GBP/USD pair is trading at $1.31682, down 0.15%, slipping below its pivot point of $1.31843. The recent bearish engulfing candle on the 4-hour chart signals strong downward momentum.

Immediate support lies at $1.31455, with deeper levels at $1.31163 and $1.30951. If selling pressure persists, these support areas could be tested soon.

On the upside, resistance is at $1.32087, with the 50-day EMA at $1.33092 acting as a key barrier.

Meanwhile, the 200-day EMA at $1.31833 indicates that a break above the pivot point could revive bullish sentiment.

However, for now, the pair remains bearish below $1.31843, and a move below immediate support could reinforce the downtrend further.

Euro Mixed as Services PMI Data Shows Divergence

The Euro exhibited mixed performance as Eurozone Services PMI data highlighted varying growth across member states. Spain’s PMI surged to 57.0, well above expectations of 54.0, while Italy’s slipped to 50.5 from 51.4.

Meanwhile, France and Germany’s PMIs remained unchanged at 48.3 and 50.6, respectively, signaling slow recovery in key economies.

Investors now turn their attention to upcoming Producer Price Index (PPI) data, which could further influence EUR’s short-term direction.

EUR/USD Technical Forecast

The EUR/USD pair is trading at $1.10358, down 0.10% for the session. It’s hovering just above its pivot point of $1.10259, which could act as a critical short-term support level.

If prices stay below this pivot, we might see the pair testing immediate support at $1.10056.

On the upside, resistance levels to watch are $1.10525 and $1.10784. The 50-day EMA at $1.10908 and the 200-day EMA at $1.11110 indicate bearish momentum, suggesting sellers could dominate if the pair stays under these moving averages.

A sustained move above $1.10259 could spark a bullish recovery, but for now, the bearish outlook prevails unless the euro can clear these key levels convincingly.