EUR/USD, GBP/USD, DXY Price Forecast: DXY Gains Support at $105.52; Buy Now?

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Published: Apr 29, 2024, 07:48 GMT+00:00

Key Points:

USD indicators: Core PCE Price Index stable at 0.3%; Revised UoM Consumer Sentiment at 77.2.
Eurozone awaits Italian 10-year Bond Auction; German Prelim CPI forecasted at 0.6%.
Dollar Index: Price at $105.622, down 0.46%; pivotal levels at $105.521; immediate resistance $106.111.

Market Overview

Last Friday, the USD saw the release of key economic indicators. The Core PCE Price Index, indicating inflation, remained stable at 0.3% month-on-month. Similarly, the Revised UoM Consumer Sentiment held steady at 77.2.

In the Eurozone, the Spanish Flash CPI year-on-year stood at 3.3%, reflecting slight moderation. Meanwhile, in the UK, the GfK Consumer Confidence Index improved marginally to -19.

Events Ahead

While today lacks significant economic releases, market attention turns to tomorrow and Friday’s events. Tomorrow, the USD will unveil the Employment Cost Index, forecasted at 1.0% quarter-on-quarter, and the Chicago PMI, expected at 44.9.

Additionally, the CB Consumer Confidence is anticipated to reach 104.0. Friday brings pivotal US employment data: the Non-Farm Employment Change projected at 243K, Average Hourly Earnings at 0.3%, and the Unemployment Rate at 3.8%.

In the Eurozone, investors await the Italian 10-year Bond Auction and the German Prelim CPI, forecasted at 0.6%. These figures will offer insights into the health of respective economies, guiding market sentiment.

US Dollar Index (DXY)

Dollar Index

In today’s analysis of the Dollar Index, the price stands at $105.622, reflecting a decline of 0.46%. Chart data reveals pivotal levels: the pivot point rests at $105.521, with immediate resistance at $106.111, followed by $106.536 and $107.097. Conversely, support levels are at $104.901, $104.434, and $103.865, respectively.

Technical indicators underscore a bullish sentiment, with the 50-day Exponential Moving Average at $105.802 and the 200-day EMA at $105.041. The index remains bullish above $105.521, but a breach below this threshold could precipitate a pronounced selling trend.

EUR/USD Technical Forecast

EUR/USD Price Chart – Source: Tradingview

Today’s analysis of the EUR/USD pair reveals a price of $1.07199, marking a gain of 0.34%. Key price levels indicate a pivot point at $1.07029, with immediate resistance at $1.07351, followed by $1.07658 and $1.07926. Conversely, support levels are at $1.06658, $1.06311, and $1.06029.

Technical indicators highlight a bullish trend, with the 50-day Exponential Moving Average at $1.06973 and the 200-day EMA at $1.07533. The pair remains bullish above the pivot point of $1.07029, but a breach below this level could trigger a notable selling trend.

GBP/USD Technical Forecast

GBP/USD Price Chart – Source: Tradingview

In today’s assessment of the GBP/USD pair, the price stands at $1.25263, reflecting a gain of 0.45%. Key price levels indicate a pivot point at $1.25228, with immediate resistance at $1.25786, followed by $1.26401 and $1.27087. Conversely, support levels are identified at $1.24742, $1.24163, and $1.23656.

Technical indicators reveal the 50-day Exponential Moving Average at $1.24722 and the 200-day EMA at $1.25522. The pair maintains a bullish trajectory above the pivot point of $1.25228; however, a breach below this level could initiate a significant selling trend.

For a look at all of today’s economic events, check out our economic calendar.

About the Author

Arslan Aliauthor

Arslan is a finance MBA and also holds an MPhil degree in behavioral finance. An expert in financial analysis and investor psychology, Arslan uses his academic background to bring valuable insights about market sentiment and whether instruments are likely to be overbought or oversold.

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