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EUR/USD, GBP/USD, DXY Price Forecast: Euro and Pound Await MPC Speeches
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Key Points:
- Dollar Index retreats by 0.02%, standing at 102.724, pivoting at 102.34 for technical sentiment.
- EUR/USD pair sees a 0.06% decrease, with a pivotal point at 1.09336.
- GBP/USD registers a slight 0.01% decline, maintaining a pivot at 1.28439 for directional cues.
Events Ahead
Crucially, the EUR/USD pair looks towards the Eurogroup Meetings for guidance on financial policies affecting the euro area, potentially influencing currency strength. Similarly, the GBP/USD pair awaits insights from MPC Member Mann’s speech, anticipated to impact the pound’s trajectory.
US Dollar Index (DXY)
The Dollar Index modestly retreated by 0.02%, landing at 102.724 today. Within the 4-hour chart framework, the Index finds its pivot at 102.34, laying the groundwork for the day’s technical trajectory.
Resistance is staged at incremental elevations: 102.76, 103.28, and peaking at 103.90, delineating the uphill battle for gains. Conversely, support levels are entrenched at 101.93, with further backstops at 101.53 and 101.02, marking potential rebound territories.
With the 50-Day Exponential Moving Average (EMA) slightly below the current price at 103.00 and the 200-Day EMA at 103.28, the Index teeters on the cusp of a bullish trend. Should it maintain ground above the pivot point of 102.34, the outlook remains favorably bullish; however, slipping below this threshold could trigger a sell-off.
EUR/USD Technical Forecast
The EUR/USD pair edges down by 0.06%, marking the price at 1.09403. The 4-hour chart delineates a pivot point at 1.09336, signifying a crucial threshold for today’s trading sentiment. Resistance is seen escalating at 1.09540, followed by 1.09803 and 1.09971, each marking potential hurdles for upward momentum.
Support, on the other hand, aligns at 1.09208, doubling as both immediate and next support due to the narrow range, with a further cushion at 1.09008 indicating levels where buyers may re-enter.
The 50-Day Exponential Moving Average (EMA) at 1.09096 and the 200-Day EMA at 1.08541 both underscore a prevailing bullish trend, albeit the current price teeters near the pivot, suggesting a delicate balance.
Thus, maintaining above 1.09336 suggests a bullish stance, whereas a descent below this juncture could precipitate a selling wave.
GBP/USD Technical Forecast
The GBP/USD pair slightly declined by 0.01%, positioning at 1.28535. In today’s 4-hour chart analysis, the pivot point is marked at 1.28439, suggesting a critical level for directional bias.
The currency pair faces immediate resistance at 1.28932, with further barriers set at 1.29284 and 1.29642, indicating the key thresholds for upward movement. On the downside, support levels are identified at 1.28024, followed by 1.27638 and 1.27229, providing potential rebound zones.
The 50-Day Exponential Moving Average (EMA) at 1.27801 and the 200-Day EMA at 1.26982 both hint at an underlying bullish trend. The current pricing, hovering slightly above the pivot, indicates a cautiously bullish outlook. Remaining above 1.28439 supports a continued bullish perspective, while a break below this point could signal the onset of a sharper 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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