The U.S. Dollar Index consolidates above 100, while EUR/USD and GBP/USD face bearish headwinds as technical indicators and central bank policy divergence keep the greenback in control.
EUR/USD is in a major downtrend below the 100 and 200 SMAs, and the forecast expects a break and close below the 1.1456 support level.
DXY consolidates above 100 with a confirmed close above 100.37 likely to extend gains toward 100.53 and 100.68.
GBP/USD remains in a downtrend below the descending trendline and 1.3377 resistance despite short-term recovery attempts.
The U.S. Dollar Index maintains a bullish stance, consolidating above the 100 level as the Federal Reserve signals further rate hikes. Meanwhile, the EUR/USD and GBP/USD pairs remain under pressure, struggling to overcome significant technical resistance levels amid divergent central bank policies.
The DXY is supported by the Federal Reserve's hawkish stance, including a recent 25 basis point rate hike and a 95% market probability of further tightening next month.
The pair is in a major downtrend, trading below its 100 and 200 SMAs, with a bearish focus on breaking the 1.1456 support level.