US Dollar Price Forecast: Dollar Strengthens as Truce Enters Week 10 – Can GBP/USD and EUR/USD Hold?

Dollar Firms as Sticky Inflation Reinforces Cautious Fed Outlook

The dollar was generally solid on June 8, 2026 after April’s CPI print showed more than expected. Headline CPI came in at 3.8%, core CPI at 4.1%, and both on a year-over-year basis. The Fed’s rate cut path has been largely priced out of its trajectory by the latest figures, and the dollar continues to find support from a potential higher for longer policy under chair Kevin Warsh.

The euro is currently under pressure from both a rising dollar and divergent policy signals. The ECB has been signaling a less tight path than the Fed while the broader eurozone growth picture has shown softer trends. The pound was trading mixed, the Bank of England having been holding back for more data after mixed UK releases and global uncertainty.

The conditional US-Iran ceasefire is over ten weeks old now and that has reduced some safe-haven demand for the dollar, although inflation and the above mentioned backdrop is supporting the greenback. The dollar is expected to remain volatile ahead of more Fed speeches, economic prints and changes to global sentiment.

US Dollar Steady At 99.22, DXY In Ascending 2h Blue Trend Channel

The US Dollar Index (DXY) is trading at 99.22 at the 2h timeframe. Green bullish candles are printing inside a blue rising trend channel. The price action is printing higher highs and higher lows and has bounced on the red 50MA near 99.18 and white descending trendline.

The RSI is positive above 52 which means the market is bullish but not overbought. The 99.00 area on volume profile is a strong support floor and the buyers are absorbing supply. The Fibonacci retracement indicates 99.55 to 99.72 as the next targets on the upside. Price action is bullish above the 99.00 dynamic support floor and is trading inside a clear uptrend channel. Higher lows are clearly visible and the buyers are in control when the market pulls back.

Trade Idea: Buy at 99.22 target 99.55 and stop at 99.00.

GBP/USD Falls to $1.3323, 4h Channel Bottom Tested

In the 4h timeframe, GBP/USD is trading at 1.3323 and has tested the white uptrend line and the 0.382 Fibonacci level at around 1.330 as red candles extend to the downside. Bearish wicks at the lower high near 1.348 show some selling pressure and red 50MA acts as moving dynamic resistance near 1.345. A few candlesticks were mixed in body and have absorbed some selling at the bottom of the rising channel floor but momentum is soft. RSI is around 48 which is neutral bearish without extreme divergence.

From volume profile we know that 1.330 is a key dynamic support pivot that the buyers defended previously. 1.326 to 1.324 are the next downside as 1.324 to 1.326 is the Fibonacci confluence level if the floor is broken. The market is neutral bearish below the moving dynamic resistance 1.345 and is defending a clean uptrend channel inside a larger consolidation. Higher lows are still holding but all price rallies are being tested by sellers.

Trade Idea: Buy at 1.3323 target 1.345 with a stop loss of 1.326.

EUR/USD Holds At 1.1639, Price Bounces On 2h Blue Trendline

EUR/USD is currently trading at 1.1639 in the 2h timeframe. The price action bounced off the blue rising trend line around 1.162 and green candles printed rejection wicks and absorbed selling. The red moving average resistance near 1.166 continues to suppress price and the price action is printing lower highs. The RSI is 48 which suggests neutral market and buyers are still interested at support. Volume profile shows 1.162 as a good pivot.

Resistance sits at the 1.166 to 1.168 confluence of Fibonacci levels. The price action remains neutral but is trading at the bottom of an uptrend channel inside a larger down trend. Price action remains clean with buyers showing interest when price reaches the bottom of the channel.

Trade Idea: Buy at 1.1639 target 1.166 and stop at 1.160.