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

Arslan Ali
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.
US Dollar Index and FOMC

In this article:

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
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
EUR/USD Price Chart – Source: Tradingview

About the Author

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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