US Dollar Price Forecast: Dollar Strengthens as Truce Enters Week 10 — GBP/USD and EUR/USD Outlook?

Dollar Firms as Sticky Inflation Reinforces Cautious Fed Outlook

On June 9, 2026, the greenback traded firmly as the hot April inflation reading had kept fears of persistently high inflation alive. The U.S. headline CPI rose 3.8% on an annual basis and the U.S. core CPI gained 4.1% on an annual basis. As a result, expectations for any near-term rate cut from the Federal Reserve under Kevin Warsh as chairman have dropped significantly, implying a “higher for longer” policy.

On the other side of the equation, the Euro traded lower as it came under pressure from both a stronger U.S. dollar and diverging monetary policy signals as the ECB continues to hint at a more accommodative rate policy amid weak growth indicators for the euro area. The pound was also traded quietly, as the central bank remains data-dependent in a mixed economic environment, amid continued uncertainty in other currencies.

While the tentative U.S.-Iran cease-fire agreement has been in effect for more than ten weeks, and this may have eased some of the safe-haven demand for the greenback, the inflation picture keeps the dollar on track. Investors are now waiting for more Fed commentary to gauge any additional moves from the monetary policymakers, upcoming economic news, and global risk sentiment for any clues as to where we will be at any time in the future.

DXY Breaks $99.94 – Blue Ascending Channel Breakout Gains Momentum on 2h

DXY is trading at $99.94 in the 2h chart. Stronger green trend candles have broken above the blue ascending trend channel, producing higher highs and higher lows. The red 50-period MA is broken in the $99.55 area, as well as the white descending trend line rejected from the highs. Bullish trend bodies are buying the dips in a controlled manner as they are developing a clear momentum. RSI is moving above 52, but is in no way close to the overbought zone, showing a positive move.

The volume profile suggests the $99.00-$99.18 area is a dynamic floor where buyers defend the price, pushing it back up. The next upside area is identified by the fib line coming from the swings in the $100.00-$100.31 area. The overall structure is bullish above $99.55, trading within the blue ascending trend channel. Buyers are in the control and a simple higher lows is in the picture, accumulating on every dip.

Trade Idea: Buy $99.94 targeting $100.31, stop $99.55.

GBP/USD Steady at $1.3366 – Rising Channel Floor Holds on 2h

GBP/USD is trading at $1.3366 in the 2h chart. The green rejection wicks have defended the white ascending trend channel, the 0.382 fib and the recent low swings in the $1.332 area. The red MA in the $1.345 area is now the next resistance, and the last few candles show buyers stepping in after small dips. The last candles are mixed and RSI is close to 52, showing neutral momentum. The volume profile suggests the $1.332 area is a strong support pivot.

Next resistance area is at the $1.340-$1.345 area. The overall structure remains bullish above $1.332 and we are trading within the clean blue rising channel. A simple higher lows pattern is holding the uptrend in motion and buyers are stepping in with every dip.

Trade Idea: Buy $1.3366 targeting $1.345, stop $1.332.

EUR/USD Dips to $1.1541 – Blue Trendline Pressure on 2h

EUR/USD is trading at $1.1541 in the 2h chart. The red trend candles were testing the blue ascending trend channel in the $1.152 area, rejecting at the red MA coming from highs at $1.158. Bearish trend candle wicks were producing lower highs and distribution, holding the recent low swings. We are currently seeing mixed trend bodies, but they are showing limited continuation and sellers are trying to break them on a bounce. RSI is close to 48 in the middle ground, showing a neutral momentum, no clear divergence.

The volume profile identifies the $1.152-$1.154 area as the support pivot. Next downside area is identified by the fib line from the swings, at $1.150-$1.147 area. The overall structure is neutral-to-bearish below $1.158 in a neutral-to-bearish area inside a larger downtrend trading within the blue ascending trend channel. Price action is waiting for buyers to defend the price.

Trade Idea: Buy $1.1541 targeting $1.158, stop $1.150.