Dollar Weakness Driven by US Economic Data and Gold Prices

Dollar Weakness Analysis

Dollar weakness is becoming evident as weaker US economic data, including a drop in the Richmond Manufacturing Index and CB Consumer Confidence, weighs heavily on the currency. Investors are shifting their focus to upcoming economic releases, including expected New Home Sales and insights from FOMC Member Kugler's speech.

US Dollar Index (DXY) Technical Review

The Dollar Index (DXY) is trading at $99.937, showing a slight decline of 0.06%. Immediate support is found around $100.103, and the critical pivot point is $100.273; a breakthrough could lead to resistance levels between $100.419 and $100.543.

Gold's Technical Outlook Amid Dollar Weakness

Gold (XAU/USD) is currently priced at $2,655.29, slightly down by 0.06%. A breakout above the pivot point at $2,659.47 could ignite bullish momentum. On the support side, levels to watch include $2,652.42 and $2,638.12, which correspond to the 50-day and 200-day EMAs.

GBP/USD and EUR/USD Forecast Amid Eurozone Challenges

• The GBP/USD has slipped to $1.34087, indicating a downward trend.
• The EUR/USD is trading at $1.11928, testing resistance amidst weak indicators from Germany and France.

In conclusion, if the dollar fails to regain footing above the pivotal levels, further declines could enhance gold's appeal and pressure other currency pairs.