EUR/USD, GBP/USD, DXY Price Forecast: Biden’s Tax Plan & US NFP In Play

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Published: Mar 8, 2024, 07:51 UTC

Key Points:

Biden's call for higher taxes may influence forex, spotlighting EUR/USD and GBP/USD movements.
Upcoming U.S. labor data and Eurozone economic indicators set to impact currency forecasts.
Dollar Index's current bearish trend under the pivot point could shift with market dynamics.

EUR/USD, GBP/USD, DXY Price Forecast: Biden’s Tax Plan & US NFP In Play

EUR/USD and GBP/USD Price Forecast: Analysis and Events Ahead

President Joe Biden’s State of the Union address, advocating for increased corporate taxes and more affordable healthcare and housing, sets a significant backdrop for traders. This comes as the forex market anticipates critical economic data releases that could impact currency valuations.

Events Ahead

In the U.S., key indicators to watch include Average Hourly Earnings (expected at 0.2%), Non-Farm Employment Change (forecasted at 198K against a previous 353K), and the Unemployment Rate (anticipated to remain steady at 3.7%). These figures will offer insights into the labor market’s health and potentially influence the Dollar Index.
For the Eurozone, German Industrial Production surprisingly increased by 1.0%, hinting at economic resilience. Further data points like the French Trade Balance (expected at -6.5B) and Revised GDP q/q (projected at 0.0%) will provide a clearer picture of the Eurozone’s economic condition.

US Dollar Index (DXY)

Dollar Index

On March 8, the Dollar Index remained steady at 102.778, with a pivot point at 102.906, acting as a crucial marker for determining the Index’s direction. It faces immediate resistance at 103.166, with subsequent levels at 103.428 and 103.634 potentially challenging upward movements.

Support is found at 102.517, with further buffers at 102.239 and 101.912 safeguarding against declines. The 50-Day and 200-Day Exponential Moving Averages, at 103.595 and 103.736 respectively, hint at underlying pressure, positioning the trend as bearish below the pivot.

EUR/USD Technical Forecast

EUR/USD Price Chart – Source: Tradingview

On March 8, the EUR/USD pair experienced a minor decline of 0.01%, trading at 1.09466. The pivot point for the day is set at 1.0954, guiding the currency pair’s potential direction. Resistance levels are observed at 1.0967, 1.0985, and 1.1010, indicating points where upward momentum could face challenges.

Conversely, support levels are identified at 1.0933, followed by 1.0911 and 1.0888, which could provide a cushion against further declines. The 50-Day and 200-Day Exponential Moving Averages, at 1.0891 and 1.0843 respectively, suggest a slight bullish undertone.

However, the current stance is bearish below 1.0954, with a potential shift towards a bullish outlook if it surpasses this critical threshold.

GBP/USD Technical Forecast

GBP/USD Price Chart – Source: Tradingview

On today’s date, the GBP/USD pair remained stable, marking a price of 1.28089. The technical analysis positions the pivot point at 1.2820, signaling a crucial juncture for future price action. Resistance levels are staged at 1.2857, 1.2893, and 1.2928, outlining potential hurdles for upward movement.

Conversely, the pair finds immediate support at 1.2785, with additional support levels at 1.2752 and 1.2712, serving as buffers against declines. The 50-Day and 200-Day Exponential Moving Averages, at 1.27069 and 1.26635 respectively, indicate a slight bullish inclination.

Nevertheless, the current sentiment suggests a bearish trend below 1.2820, with potential for a bullish shift upon breaking above this pivotal threshold.

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.