US Dollar Price Forecast: DXY Climbs to $99.29 as Ceasefire Holds — Can GBP/USD and EUR/USD Recover?

Dollar Firms as Sticky Inflation Reinforces Cautious Fed Outlook

The U.S. dollar stayed on a stronger path on June 3, 2026 as worries over higher-inflation persisted in the aftermath of higher-than-anticipated April Consumer Price Index data. The year-over-year headlined and core CPI was 3.8 and 4.1 percent, respectively. These releases have reduced the prospect of any Federal Reserve rate cut in the foreseeable future, while Chairman Kevin Warsh has stressed a higher-for-longer Fed rate stance.

Meanwhile, the euro has been under pressure in the face of the strengthening U.S. dollar and in light of a different policy trajectory for the European Central Bank, which has suggested a more accommodative bias amid lackluster growth data. The British pound has been trading on shaky ground as the Bank of England is keeping an eye on future economic data given the mixed picture for the United Kingdom’s economic outlook, coupled with global uncertainties.

In spite of the conditional U.S.-Iran ceasefire, now more than nine weeks old, which has reduced some safe-haven demand for the dollar, the U.S. dollar still has some footing based on the backdrop of higher inflationary pressures. The currency markets could experience continued volatility in the days ahead as traders await further comments from the Federal Reserve, economic releases, and any changes to global risk sentiment resulting from the Trump-Xi summit.

DXY Climbs to $99.29 – Blue Support Holds with Green Rejection Wicks

The DXY has pushed up to $99.29 on the 1H timeframe, where green candles have successfully defended a blue ascending trendline in the area of $99.00 and a horizontal level near $99.06. The bullish price bars have recorded higher lows and rejected white descending trendline pressure near $99.55. Red MA50 sits close by at $99.18 and is acting as resistance with mixed rejection candles. RSI is around 52. Volume profile identifies $98.92 to $99.00 as a strong dynamic support zone.

Fibonacci levels derived from the most recent significant price move have pinpointed a price zone around $99.37 to $99.55 as the next cluster. The market structure is neutral-bullish above $99.00 as it is consolidating within a range-bound short-term context.

Trade Idea: Buy $99.29 targeting $99.37, stop $99.00.

GBP/USD Holds $1.3475 – Rising Channel Floor Bounce on 1h

GBP/USD has held at $1.3475 on the 1H timeframe after green rejection candles have defended the white ascending trendline and 0.382 Fibonacci near $1.343. Red MA sits above at $1.345 with higher lows intact inside of the channel. Buyer order absorption at the floor has been clearly marked by the recent candles. RSI is near 52. Volume profile identifies $1.343 as a strong support zone.

Price resistance is sitting at $1.348 to $1.350. The market structure is bullish above $1.343 as it continues to defend a clean rising channel.

Trade Idea: Buy $1.3475 targeting $1.350, stop $1.343.

EUR/USD Steady at $1.1649 – Blue Trendline Defense on 1h

EUR/USD has stabilized at $1.1649 on the 1H timeframe after green candles successfully defended the blue ascending trendline and 0.382 Fibonacci around $1.162. Price action has recorded lower highs against red MA close by at $1.166. Recent mixed candle bodies have absorbed sell orders from the floor.

RSI is near 48. Volume profile identifies $1.162 as a price pivot area. Price resistance is situated at $1.166 to $1.168. The market structure is neutral as it is testing support levels of a rising channel within a more dominant price trend.

Trade Idea: Buy $1.1649 targeting $1.166, stop $1.160.