The US dollar soared last week on strong CPI data, geopolitical concerns and a spike in bond yields.
So what does this mean for DXY, EURUSD, GBPUSD, USDJPY and XAUUSD next week?
Find out with today’s weekly forex forecast!
![Weekly Forex Forecast 15-19 April 2024 YouTube player](https://i.ytimg.com/vi/4BS8zw52rbI/hqdefault.jpg)
US Dollar Index (DXY) Forecast
The US dollar soared late last week, gaining a staggering 1.8% in three days.
The move comes a week after the yield on the 10-year U.S. Treasury rose back to 4.335%, its highest level since last year.
In my opinion, this is just the beginning of a stronger US dollar as bond yields rise above critical levels.
However, timing is still critical and the DXY 105.80 to 106.00 area is likely to attract sellers next week.
Friday’s close was right at that line, so the first 24-48 hours of trading next week will determine whether 105.80 provides support or if there is a deeper pullback to 105.00.
In any case, I prefer to be dollar long while DXY is above 105.00 and the US 10-year Treasury yield is above 4.335% on the higher time frame.
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![DXY 2024 04 13 13 32 46](https://dailypriceaction.com/wp-content/uploads/2024/04/DXY_2024-04-13_13-32-46-1024x585.png)
euro dollar forecast
Last week, the Eurodollar crashed to its lowest level since November.
The pair removed support at 1.0730 on a weekly close basis and reversed the area into resistance in the coming days.
It is unclear whether 1.0730 will be retested, but the damage has been done.
Unless the EURUSD bulls can get back up to 1.0730 within a few days, I prefer to short EURUSD on strength grounds.
As always, the timing of the EUR short is important, especially with EURUSD sitting at the weekly support at 1.0635.
![Eurodollar 2024 04 13 13 38 15](https://dailypriceaction.com/wp-content/uploads/2024/04/EURUSD_2024-04-13_13-38-15-1024x585.png)
GBPUSD Forecast
GBPUSD is another currency pair that broke through important support last week.
The pair has spent the past few months ranged between support at 1.2500 and resistance at 1.2800.
Last week’s close flips the 1.2500 area into new resistance, leaving the 1.2375 support exposed.
GBPUSD will turn bullish again only if the closing price of the day is above 1.2535.
Therefore, in my opinion, shorting from the 1.2500 area makes the most sense as long as GBPUSD is trading below it.
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![Pound Dollar 2024 04 13 13 40 09](https://dailypriceaction.com/wp-content/uploads/2024/04/GBPUSD_2024-04-13_13-40-09-1024x585.png)
dollar yen forecast
USDJPY broke above the 152.00 handle last week for the first time since 1990.
This confirms the ascending triangle that I recently discussed, with resistance coming in at 155.60.
However, USDJPY is not my favorite way to test USD strength.
In fact, it’s one of my most favorites at the moment.
That’s due to uncertainty about when the Bank of Japan (BOJ) will intervene and the recent strength of the yen, which has wiped out most of Friday’s dollar strength.
However, as long as USDJPY remains above 152.00 on the higher timeframe, the bullish breakout targeting 155.60 remains alive and well.
Alternatively, a sustained break below 152.00 on a daily basis will be bearish.
![US dollar yen 2024 04 13 13 43 19](https://dailypriceaction.com/wp-content/uploads/2024/04/USDJPY_2024-04-13_13-43-19-1024x585.png)
XAUUSD Forecast
Gold has soared to record highs on the back of persistent inflation and geopolitical concerns.
Friday’s trading saw a significant 4% range from XAUUSD, but the bulls were unable to close the metal above the channel resistance at $2,380.
This suggests a pullback in the coming days, but traders should be cautious about shorting XAUUSD.
The trend is clearly bullish, so it makes more sense to buy a return to support rather than timing an upside.
The main resistance level for XAUUSD is at $2,380, but a partial retrace of Friday’s top core seems likely.
Support fees are $2,305 and $2,260.
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![XAUUSD 2024 04 13 13 48 03](https://dailypriceaction.com/wp-content/uploads/2024/04/XAUUSD_2024-04-13_13-48-03-1024x585.png)