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EUR/USD, GBP/USD, DXY Price Forecast: DXY Rises to $106; Bullish Trend Ahead
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Key Points:
- Dollar Index rose to $106.052, up 0.17%, after mixed U.S. economic data.
- Pending Home Sales dropped 2.1%, worse than the expected 0.6% increase.
- Core Durable Goods Orders fell by 0.1%, missing the forecast of 0.2%.
On June 27, the GBP/USD pair saw little movement following BOE Governor Bailey’s speech. However, the Dollar Index (DXY) rose to $106.052, up 0.17%, following mixed U.S. economic data.
The Final GDP for Q1 met expectations at 1.4%, while Unemployment Claims dropped to 233K, suggesting a resilient labor market. Core Durable Goods Orders fell slightly by 0.1%, missing the forecast of 0.2%, while
Durable Goods Orders increased by 0.1%, surpassing the anticipated -0.5%. Meanwhile, Pending Home Sales plunged by 2.1%, much worse than the expected 0.6% rise, adding to the mixed sentiment.
Events Ahead
Looking ahead to June 28, President Biden is scheduled to speak, potentially influencing market sentiment. In the Eurozone, French Prelim CPI m/m is expected at 0.1%, and Spanish Flash CPI y/y at 3.4%, slightly down from the previous 3.6%. These figures could affect the EUR/USD pair, currently trading near key support levels.
In the U.S., the Core PCE Price Index m/m, a critical inflation gauge for the Fed, is anticipated at 0.1%. Additionally, the Chicago PMI and Revised UoM Consumer Sentiment figures will provide further insight into economic conditions.
The Dollar Index (DXY) is trading at $106.052, up 0.17%. On the 4-hour chart, the pivot point is at $105.926. Immediate resistance levels are at $106.270, $106.488, and $106.673.
Immediate support is at $105.711, with further support at $105.549 and $105.373. The 50-day EMA is $105.654, while the 200-day EMA stands at $105.208.The index remains bearish below the pivot point of $105.926.
A break above this level could shift the bias to bullish, while maintaining below it may reinforce the downward trend.
EUR/USD Technical Forecast
GBP/USD is trading at $1.26327, down 0.13%. On the 4-hour chart, the pivot point is at $1.26482. Immediate resistance levels are at $1.26710, $1.27007, and $1.27324.
Immediate support is at $1.26123, with further support at $1.25826 and $1.25502. The 50-day EMA is $1.26692, while the 200-day EMA stands at $1.26821.
The pair remains bearish below the pivot point of $1.26482. A break above this level could shift the bias to bullish, while maintaining below it may reinforce the downward trend.
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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