DXY, EUR/USD and GBP/USD price forecasts 8 June 2023
The dollar index, EUR/USD and GBP/USD prices have moved into near term consolidations, although longer term trends persist.
The dollar index / basket (DXY)
After breaking above the 103.15 the dollar index price has moved into a near term consolidation between levels 103.15 (support) and 104.35 (resistance).
The price continues to trade below the 200-day simple moving average (blue line) (200MA), suggesting that the longer-term trend bias remains down for the time being.
A close below 103.15 would suggest a downside breakout and continuation of the longer-term downtrend, with 102.00 the initial support target from the move. In this situation, a close above the one or two day high (depending on threshold for risk) might be used as a stop loss indication.
Should the price instead move to close higher and above the 200MA, the longer-term downtrend would be broken. This could suggest that we are now moving into a broader sideways rangebound environment, and a short only bias would no longer be considered.
Only on a move above the major high at 105.30 would a new longer-term uptrend for the dollar index be considered.
EUR/USD
The short-term correction of the longer-term EUR/USD uptrend has found support at the 1.0685 level. Traders looking for long entry and respecting the longer-term uptrend bias, might hope to see a strong close on today’s candle (8 June 2023) before targeting a move towards the 1.0855 resistance level. In this scenario, a close below the 1.0685 support level might be used as a stop loss indication.
Should the price break support and move below the 200MA, the longer-term uptrend would be deemed to have been broken.
Only on a move below the major low at 1.0513, might a new longer-term downtrend for the EUR/USD be considered.
GBP/USD (Cable)
The price of cable looks to be consolidating between levels 1.2342 (support) and 1.2543 (resistance). The longer-term trend remains up as we see the price still trading firmly above the 200MA.
Trend followers might hope to see either a bullish price reversal off the 1.2343 support level or break of the 1.2543 resistance level for long entry in line with the longer-term trend bias.
Should the price instead move to break support at 1.2343, a confluence of the 200MA and 1.2160 levels provide the next downside target from the move. In this scenario, trend followers might prefer to wait the initial weakness out, looking for a bullish price reversal closer to the 1.2160 for long entry.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
Live prices on most popular markets
- Equities
- Indices
- Forex
- Commodities
Prices above are subject to our website terms and agreements. Prices are indicative only. All share prices are delayed by at least 15 minutes.
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
