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USD, EUR, GBP Price Forecast: UK Borrowing Dips, Focus Shifts to US FOMC Minutes
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Key Points:
- US Dollar Index (DXY): Identified pivot point at 104.102, with resistance levels at 104.417, 104.680, and 104.987.
- EUR/USD Technical Forecast: Current price at $1.08115, with pivotal support at $1.07984 and resistance at $1.08399.
- GBP/USD Technical Forecast: Trading at $1.26288, key resistance levels at $1.26693, $1.27171, and $1.27586.
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Notably, GBP’s Public Sector Net Borrowing improved to -17.6B from the previous -18.4B, indicating some positive fiscal developments.
Events Ahead
Looking forward, key events include FOMC Member Bostic’s speech at 13:00 UTC, offering insights into the Fed’s monetary policy stance. Later, the FOMC Meeting Minutes will be released at 19:00 UTC, providing detailed records of the latest meeting’s discussions, crucial for gauging future interest rate decisions.
On the European front, Germany’s 10-year Bond Auction figures are tentatively awaited, with a forecast of 2.23% against the previous 1.8%. Additionally, MPC Member Dhingra’s speech will offer valuable perspectives on the UK’s economic outlook.
Lastly, GBP’s CBI Industrial Order Expectations, scheduled at 11:00 UTC, will provide insights into the UK’s manufacturing sector’s sentiment, potentially influencing GBP’s movements against its counterparts.
US Dollar Index (DXY)
The US Dollar Index (DXY)‘s pivot point identified at 104.102, suggesting a potential inflection in trading sentiment. Resistance levels are staged incrementally at 104.417, 104.680, and 104.987, marking thresholds for bullish momentum.
Conversely, support levels at 103.798, followed by 103.389 and 102.911, delineate areas of potential stabilization. The 50-day and 200-day Exponential Moving Averages, at 104.240 and 103.749 respectively, hint at underlying market strength, positioning the dollar for possible uplift above the $103.798 mark.
This technical outlook leans towards a cautiously optimistic view for the dollar, contingent on surpassing immediate support levels.
EUR/USD Technical Forecast
In today’s analysis, EUR/USD stands at $1.08115, marking a slight increase of 0.04% over the last 24 hours. Key price levels indicate a pivot point at $1.07984, with immediate resistance seen at $1.08399, $1.08872, and $1.09320, while support levels are noted at $1.07615, $1.07331, and $1.06937.
Technical indicators reveal a 50-day Exponential Moving Average (EMA) at $1.07765, with an observed upward trendline likely providing support around $1.07935.
The overall trend remains bullish above $1.07984, suggesting potential upward momentum, while a breach below may indicate a shift in sentiment.
GBP/USD Technical Forecast
In today’s analysis, GBP/USD is currently valued at $1.26288, reflecting a modest increase of 0.06% within the last 24 hours. Key price levels indicate a pivot point at $1.26172, with immediate resistance levels positioned at $1.26693, $1.27171, and $1.27586, while support levels are observed at $1.25778, $1.25385, and $1.25018.
Technical indicators reveal a 50-day Exponential Moving Average (EMA) at $1.26080, with a notable symmetrical triangle pattern emerging, suggesting an imminent breakout before subsequent price action.
The overall trend remains bullish above $1.26172, indicating potential upward movement, while a breach below may signal a shift in sentiment.
For a look at all of today’s economic events, check out our economic calendar.
About the Author
Arslan Aliauthor
Arslan, a webinar speaker and derivatives analyst, has an MBA in Finance and MPhil in Behavioral Finance. He guides financial analysis, trading, and cryptocurrency forecasting. Expert in trading psychology and sentiment.
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