Forex Technical Outlook Q1 2024: Analysis of DXY, EUR/USD, USD/JPY, GBP/USD

Currently, DXY is testing a critical support zone at 102.00 to 101.70, marked by a long-term rising trendline and the 50% Fibonacci retracement.

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1/12/20242 min read

Forex Technical Outlook Q1 2024: Analysis of DXY, EUR/USD, USD/JPY, GBP/USD

Introduction:

This article delves into the technical forecast for the US dollar index and major FX pairsā€”DXY, EUR/USD, USD/JPY, and GBP/USD. While the fundamental prospects for the US currency are excluded, readers can access the full Q1 forecast for comprehensive insights.

1. DXY Technical Analysis:

The US dollar, represented by the DXY index, experienced an upward surge in Q4 2023 but faced resistance near 107.3, leading to an unexpected downturn. Currently, DXY is testing a critical support zone at 102.00 to 101.70, marked by a long-term rising trendline and the 50% Fibonacci retracement. The article emphasizes the significance of preserving this support to avoid potential downward pressure. Key resistance levels and potential breakout scenarios are also outlined in the technical analysis.

2. EUR/USD Technical Analysis:

Following a third-quarter sell-off, EUR/USD rebounded in Q4 2023, surpassing its 50-week simple moving average. The Q1 2024 outlook suggests resistance at 1.1100/1.1150, with potential bullish momentum. Further resistance levels and upside targets, as well as potential support levels, are highlighted. The technical analysis considers scenarios of sustained bullish momentum or a shift favoring sellers.

3. USD/JPY Technical Analysis:

USD/JPY retested its 2022 high near 152.00 in Q4 2023 but faced resistance, leading to a retreat. The article emphasizes the importance of the 50-week simple moving average at 141.00 and potential support and resistance levels. The underlying uptrend is discussed, but the analysis acknowledges the potential for a less constructive bias if certain levels are breached. Bullish and bearish scenarios are explored.

4. GBP/USD Technical Analysis:

GBP/USD rallied in Q4 2023, approaching the Fibonacci threshold at 1.2765. The Q1 2024 outlook considers potential resistance levels, including the 200-week simple moving average and trendline resistance. Support levels and potential downside scenarios are discussed, offering a comprehensive analysis of GBP/USD technical prospects.

Conclusion:

The technical outlook for DXY, EUR/USD, USD/JPY, and GBP/USD in Q1 2024 provides traders with valuable insights into potential trends, support, and resistance levels. Whether considering bullish or bearish scenarios, the article equips readers with essential information to navigate the evolving forex market dynamics.