**EUR/USD, GBP/USD, and EUR/GBP Forecast: US Dollar Attempts a Rebound**
*Based on an article by Christopher Lewis, FXEmpire*
The global forex market continues to be dynamic as traders and analysts observe movements in major currency pairs. Recently, the US Dollar has shown signs of bouncing back against major currencies, including the Euro and the British Pound. While the broader trend has been bearish for the US Dollar over recent weeks, the latest market activities suggest that traders may be re-evaluating their strategies, especially with economic data and central bank policy stances influencing sentiment.
Below is an extended analysis of three key currency pairs – EUR/USD, GBP/USD, and EUR/GBP – including price behavior over recent sessions and potential scenarios going forward. This article draws from insights provided by Christopher Lewis on FXEmpire, enriched with additional context and forecasting to help traders navigate the evolving landscape.
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## EUR/USD Technical and Fundamental Outlook
The EUR/USD currency pair has seen considerable activity lately as the Euro attempts to hold ground against a fluctuating US Dollar. Despite forming a tight range over the last several sessions, the pair remains susceptible to both technical and fundamental influences.
### Key Technical Observations
– The pair has recently experienced some consolidation near key resistance levels.
– Currently, EUR/USD is hovering around the 1.0850 mark after testing higher levels earlier in the month.
– A significant resistance zone is evident around the 1.09 handle.
– Support lies at 1.08, with a potential retest of 1.0750 if the downside momentum continues.
– Momentum indicators like RSI and MACD suggest neutral to slightly bearish sentiment in the short term.
– The 50-day and 200-day moving averages are currently offering dynamic support and resistance bands and may provide directional cues in sessions ahead.
### Fundamental Factors Affecting EUR/USD
– The US Federal Reserve has maintained a cautious tone regarding interest rate cuts, contributing to occasional strength in the Dollar.
– Mixed economic data from both the Eurozone and United States have created an indecisive trading environment for the pair.
– Inflation remains a key concern in both economies. As such, traders closely watch CPI and employment data for forward guidance.
– ECB representatives remain divided on the trajectory of monetary easing, which injects additional uncertainty into Euro demand.
### Forecast Scenarios for EUR/USD
– If the US Dollar strengthens across the board, EUR/USD is likely to revisit lower support levels, potentially targeting 1.0750 or even 1.07 in the medium term.
– Conversely, a shift in Federal Reserve policy language or weaker US economic numbers could propel the pair back toward 1.09 and potentially closer to 1.10.
– Overall, the pair’s movement will remain heavily influenced by macroeconomic data releases and central bank rhetoric in the coming sessions.
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## GBP/USD: Bullish Momentum Faces Resistance
Cable (GBP/USD) has recently experienced upward momentum. However, its rally is facing growing resistance amid signs of a strengthening US Dollar and uncertainty surrounding UK economic prospects. While the pair has appreciated notably since the beginning of the year, the latest moves suggest a possible pause or reversal in the trend.
### Key Technical Observations
– GBP/USD recently tested resistance in the 1.27 region before retreating slightly.
– The pair has displayed strong bullish behavior over recent weeks, but momentum seems to be slowing.
– Immediate support lies at 1.2625, with further support around the psychological 1.25 level.
– Resistance is clustered between 1.27 and 1.2760, creating a ceiling for upward movement without further bullish catalysts.
– Momentum indicators such as RSI are approaching overbought conditions, pointing to potential cooling off.
### Fundamental Considerations for GBP/USD
– Bank of England policy remains hawkish but moderated, with officials signaling concern over inflation stickiness but also wary of tightening too much.
– The UK faces slowing economic growth, as confirmed by recent
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