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US Dollar Forecast: EUR/USD, GBP/USD React to $104.365 Surge & Market Shifts
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Key Points:
- US Dollar's rise to $104.364 reflects bullish trends, impacting EUR/USD and GBP/USD currency pairs.
- GBP's unexpected Rightmove HPI data at 0.9% versus forecasted 1.3% hints at market recalibrations.
- Anticipated Eurozone Current Account and UK Monetary Policy Report Hearings may reshape forex dynamics.
Events Ahead
The focus shifts towards significant economic releases and central bank communications:
- For the Eurozone: The Current Account data, anticipated at €20.3 billion, down from €24.6 billion, will provide insights into the Eurozone’s trade balance.
- For the UK: Attention turns to the Monetary Policy Report Hearings. The Bank of England’s Monetary Policy Committee (MPC) members’ deliberations on interest rate decisions and their public engagements are crucial.
Additionally, the Composite Leading Index, which amalgamates 10 economic indicators, will provide a broader view of the US economic outlook. This index, reflecting aspects such as employment, consumer confidence, and housing, could further influence the US Dollar’s strength and, by extension, its relationship with major currency pairs.
US Dollar Index (DXY)
The Dollar Index’s is trading with a bullish bias with it’s pivotal holds around $104.197. Looking forward, resistance levels at $104.594, $104.987, and $105.283 delineate the potential ceilings the index might encounter. Conversely, support is established at $104.031, further down to $103.803 and $103.613, which could serve as floors in case of a downward shift.
The technical landscape, highlighted by the 50-Day and 200-Day EMAs at $104.30 and $103.73 respectively, leans towards a bullish sentiment above the pivot point, suggesting a potential for upward momentum continuation.
EUR/USD Technical Forecast
The EUR/USD pair marginally dipped by 0.04%, trading at 1.07736. This movement is part of a broader narrative of fluctuating currency values, with the pair currently navigating near critical technical markers.
The pivot point at 1.07625 serves as a baseline for potential directional shifts, with immediate resistance levels positioned at 1.08064, 1.08355, and 1.08619.
Support is found slightly lower at 1.07440, followed by 1.07223 and 1.06937, indicating zones where the pair might find a floor in the case of further declines.
The 50 EMA at 1.0766 and the 200 EMA at 1.0822 hint at a bullish trend above the pivot point, suggesting room for upward movement if the pair maintains above these levels.
GBP/USD Technical Forecast
The GBP/USD pair slightly declined by 0.02%, currently positioned at 1.25901. This subtle movement underscores the ongoing volatility and market sensitivity to broader economic indicators and geopolitical events.
The pair’s immediate pivot point at 1.2624 signifies a critical juncture, with resistance levels marked at 1.2655, 1.2683, and 1.2720, suggesting potential ceilings for upward momentum.
Conversely, support is established at 1.2552, with further levels at 1.2512 and 1.2479, delineating areas where the pair might find footing in case of a pullback.
The 50-day and 200-day EMAs, at 1.2601 and 1.2636 respectively, indicate a bullish inclination above the pivot, hinting at possible ascension if these thresholds are surpassed.
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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