The US dollar index fell slightly during the European session on Friday (April 26). EUR/USD traded at 1.0747 in the intraday period, up 0.17%. GBP/USD reported an intraday increase of 0.19% at 1.2536/37.
On Thursday, early data on US GDP showed a moderate increase of 1.6%, slightly lower than expected. The number of people applying for unemployment benefits remained stable, while the GDP price index soared by 3.1%, indicating that inflationary pressure is still present.
Meanwhile, in the Eurozone, Spain's unemployment rate rose slightly to 12.3%, reflecting continuing challenges facing the labor market.
Furthermore, the UK's CBI has achieved a sharp drop in sales to -44, indicating a sharp decline in sales activity, while the GfK consumer confidence index remains pessimistic, with a reading of -19.
Looking ahead, major financial events are about to happen. In the US, investors will pay close attention to the release of the core personal consumption expenditure price index, personal income and personal expenditure data, which are key indicators for measuring inflation trends and consumer behavior.
Furthermore, revisions to UoM consumer confidence and inflation expectations (currently 3.1%) will provide further insight into consumer confidence and the outlook for inflation.
In the Eurozone, attention will be focused on M3 money supply and private loan data, which provide clues to the health of the region's financial system and lending activity.
US dollar index
(US Dollar Index 4-hour chart source: eHuitong)
On the 4-hour chart, the pivot point is at $105.521. Immediate resistance levels are at 106.111 and 106.536, immediate support is at 104.901, followed by 104.434 and 103.865.
The 50-day exponential moving average (EMA) is at 105.782 and the 200-day EMA is at 104.988, providing further insight into market trends. As bullish sentiment prevails above 105.521, a break below this level could trigger significant selling pressure.
EUR/USD technical forecast
(EUR/USD 4-hour chart source: Easy Exchange)
On the 4-hour chart, the pivot point is at $1.07351.
Recent resistance levels were found at 1.07658, 1.07926, and 1.08347, while recent support was found at 1.07045, followed by 1.06658 and 1.06029.
The 50-day exponential moving average (EMA) is at 1.06933 and the 200-day EMA is at 1.07558, providing more insight into market trends. As bearish sentiment prevails below 1.07351, a break above this level could indicate that the pair will turn bullish and vice versa.
GBP/USD technical forecast
(GBP/USD 4-hour chart source: Easy Exchange)
On the 4-hour chart, the pivot point is at $1.25228. Immediate resistance levels are at 1.25786, 1.26401, and 1.27087, with immediate support at 1.24260, followed by 1.23656 and 1.23023.
The 50-day exponential moving average (EMA) is at 1.24606 and the 200-day EMA is at 1.25545, providing more insight into market trends. As bearish sentiment prevails below 1.25228, breaking this level could mean that the pair will turn bullish and vice versa.
At 16:58 Beijing time, the US dollar index reported 105.56, a decrease of 0.01%. EUR/USD rose 0.11% to 1.0741. GBP/USD rose 0.11% to 1.2526.