Dollar Gains Ground: Insights on Gold, GBP/USD, and EUR/USD Performance
The U.S. Dollar gained momentum as the NFIB Small Business Index rose to 91.5, surpassing the previous figure of 91.2. Meanwhile, the trade balance showed a narrower deficit at -$70.4 billion. Gold prices remain under pressure, trading near $2,621, as investors anticipate comments from several Federal Reserve officials throughout the day. The upcoming FOMC speeches, along with the release of the FOMC meeting minutes, are expected to provide further insights into the Fed’s policy outlook. A strong dollar and rising Treasury yields could continue to weigh on gold in the near term.
Dollar Index (DXY) Technical Analysis
The Dollar Index (DXY) is trading slightly higher at $102.565, up 0.08% for the day, signaling a modest bullish tone. On the 4-hour chart, the index has recently completed a 38.2% Fibonacci retracement around the $102.35 support level, indicating that the uptrend remains intact above this point.
- Immediate resistance stands at $102.692
- Further targets at $102.889 and $103.073 if bullish momentum continues
- The 50-day EMA at $101.869 acts as support
- A break below $102.350 could trigger a pullback
Gold Technical Analysis
Gold (XAU/USD) is trading slightly lower at $2,621.62, struggling to stay above the $2,620 support level. The 2-hour chart shows the pivot point at $2,624.22, with immediate resistance at $2,635.46.
- The 50-day EMA at $2,639.20 indicates potential bearish pressure
- A break above $2,635 could trigger a bullish reversal
- If falling below $2,620 might accelerate selling momentum
GBP/USD Technical Analysis
The GBP/USD is trading slightly lower at $1.30944, down 0.07% for the day, as the pair consolidates just below the $1.31068 pivot point. The 4-hour chart shows that resistance levels at the 50-day EMA and 200-day EMA are acting near $1.31803 and $1.31659 respectively.
- Immediate support at $1.30585
- If GBP/USD breaks above $1.31068, it could target resistance levels at $1.31348
EUR/USD Technical Forecast
The EUR/USD is trading at $1.09705, down 0.08% for the day, hovering near a key support level at $1.09516. A break above could lead to tests of resistance at $1.10038.
- The 50-day EMA at $1.09982 acts as a near-term barrier
- Continued pressure below $1.09844 may target supports at $1.09291
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.