The US Dollar Index (DXY) extended its pullback this week after breaching its September trend line at 108.80, with buyers attempting to hold the selloff at the 108.00 support level. However, the current session is offering clues for the DXY’s direction as we head into next week, with the 106.00 region emerging as a crucial support area to monitor.
Key Support and Resistance Levels for DXY
The 106.00 level has shown significant relevance since November and December, aligning with a quarterly fair value gap. Should the DXY close below 108.00 today, next week’s resistance zone will likely shift to the 107.50–107.70 range.
EURUSD Outlook
EURUSD has cleared two major resistance levels this week at 1.0350 and 1.0460, driven by the DXY’s breakdown of its September trend line on Monday. Looking ahead, the focus is on whether EURUSD can hold above 1.0615 to begin “filling” the imbalance left by the breakdown in November. Support for EURUSD next week is found at 1.0460, with resistance levels between 1.0615 and 1.0670.
GBPUSD Forecast
GBPUSD is currently backtesting the 1.2380 level, which had been a point of imbalance during January’s earlier breakdown. Despite this, given the current DXY trends, I’m cautious about looking for GBPUSD shorts right now. The range between 1.2570 and 1.2620 will be key to watch next week, and if GBPUSD closes above 1.2480 today, this level could shift to support.
AUDUSD Analysis
AUDUSD broke out of its October descending channel this week, a development we highlighted last week. One key resistance level to watch is 0.6434, which coincides with the November low. A retest of this level would help fill the imbalance left from November’s breakdown. Support for AUDUSD lies at 0.6275.
XAUUSD (Gold) Forecast
Gold (XAUUSD) enjoyed a strong rally this week, surpassing the critical $2,716 level. However, the bullish momentum faces a major test as gold approaches the $2,790 all-time high, with the price coming within $4 of this level during Friday’s session. While this week’s rally has been impressive, it’s essential to remember that gold remains range-bound below $2,790—a pattern that has persisted since September. It’s still a range until proven otherwise.
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