**Weekly Forex Analysis: EUR/USD, GBP/USD, AUD/USD, and More**
*Based on the original article by Tomasz Wisniewski, CMT on FXStreet*
**Introduction**
This comprehensive weekly forex analysis assesses the significant currency pairs including EUR/USD, GBP/USD, and AUD/USD. The insights presented consider recent price actions, technical patterns, and underlying economic factors. In addition, this analysis will touch upon other major USD pairs to provide a complete market perspective. Information from other reputable sources such as DailyFX and Investing.com has been incorporated for a well-rounded viewpoint. All insights from the original FXStreet article have been retained and expanded.
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**Market Sentiment and US Dollar Overview**
The US dollar remains influenced by economic data, Federal Reserve comments, and global market sentiment. Recently, the dollar index (DXY) has experienced volatility amid uncertain interest rate expectations and shifting risk appetite. Debate among investors about when the Fed might cut interest rates continues to create fluctuations.
– The Federal Reserve has kept its policy rate steady, signaling a data-dependent approach to any future changes
– Inflation in the US continues to trend downward but remains above the Fed’s 2% target, causing uncertainty about rapid policy easing
– US job data and monthly CPI figures are being closely monitored
According to analysts at ING and DailyFX, this environment often reinforces the greenback’s haven status during periods of risk-off sentiment.
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**EUR/USD Analysis**
The EUR/USD pair is one of the most traded in the forex market and continues to reflect both transatlantic economic divergences and risk sentiment.
**Technical Analysis:**
– EUR/USD experienced a pullback from recent highs near 1.09 and faces key resistance at this level
– The pair has settled into a corrective structure, consolidating below the falling 200-day moving average
– RSI momentum indicators point toward a cautious outlook, neither oversold nor overbought at current levels
**Key Support and Resistance Levels:**
– Immediate resistance at 1.0920-1.0940, where sellers have previously stepped in
– Key support rests at 1.0720, followed by the psychological level at 1.0700
– A break below support could open the door toward deeper retracements near 1.0650
**Fundamental Drivers:**
– Diverging monetary policies between the Federal Reserve and the European Central Bank (ECB) impact sentiment
– Eurozone growth remains sluggish, with inflation readings not providing the ECB room for immediate rate hikes
– The weak economic performance in Germany continues to weigh on the wider Eurozone outlook
– ECB speakers have recently emphasized data dependency, signaling uncertainty about policy direction
**Outlook:**
Unless the pair manages a daily close above the 1.0940 resistance, the risk remains tilted to the downside.
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**GBP/USD Analysis**
The GBP/USD pair is sensitive to both US data and domestic developments within Britain.
**Technical Analysis:**
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Read more on AUD/USD trading.