Last week, the US Dollar Index (DXY) collapsed and currency pairs such as EURUSD and GBPUSD soared.
But can dollar bears sustain last week’s moves, or is there a bottom for the USD?
Check out today’s weekly forex forecast to find out.
Let’s get started!
US Dollar Index (DXY) Forecast
DXY broke last week and ended below the key levels at 103.50 and 103.00.
However, DXY found support at 102.60 on Friday, but dollar bulls will be out of work next week.
This is because the 103.00 area is resistance for DXY.
If the bulls can secure a daily close above 103.00, the 103.50 to 103.80 area will be exposed.
Conversely, if the price continues to break below 102.60, 101.90 will be exposed.
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![](https://dailypriceaction.com/wp-content/uploads/2024/03/DXY_2024-03-10_11-56-00-1024x538.png)
euro dollar forecast
EURUSD broke above 1.0900 last week, putting pressure on the key level of 1.1000.
Last week’s breakout also pushed the euro above the 2022 trendline, which we have covered several times on this website.
As long as EURUSD stays above the 1.0900 mark on a daily close basis, the short-term uptrend remains intact and 1.1000 is the next major resistance level.
Alternatively, a sustained break below 1.0900 on the higher time frame could suggest a fakeout and expose 1.0790.
![](https://dailypriceaction.com/wp-content/uploads/2024/03/EURUSD_2024-03-10_11-57-27-1024x538.png)
GBPUSD Forecast
GBPUSD ended above the descending channel resistance level at 1.2680 on March 4th.
If you’ve been following it for the past few weeks, you’ll be familiar with this level.
However, going long around 1.2700 was difficult given the multiple swing highs in late 2023 and early 2024.
Last week’s closing price for GBPUSD meant 1.2825, making the 1.2770 area a must-have area for bulls.
If the pound is able to break above these levels on higher time frames, a rally towards 1.3000 and possibly 1.3140 seems likely.
Alternatively, a sustained break below 1.2825 and especially 1.2770 could invalidate last week’s breakout and expose lower levels.
![](https://dailypriceaction.com/wp-content/uploads/2024/03/GBPUSD_2024-03-10_11-58-37-1024x538.png)
Euroyen prediction
EURJPY has one of the best looking setups in the Forex market.
Since 2022, we have seen the Euroyen remain within a significant upward channel, but just recently, the Euroyen could carve out even lower highs.
This, combined with Friday’s break below 161.70, could lead to a short setup this week.
The 161.70 area is also the intersection with the December trend line, which broke down last week.
A retest of this area as new resistance should attract sellers, with key support coming at 158.60.
Of course, if the breakback above 161.70 continues, Euroyen will show strength again.
But I like the idea of looking for lack of strength while the pair is below that mark.
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![](https://dailypriceaction.com/wp-content/uploads/2024/03/EURJPY_2024-03-10_11-59-43-1024x538.png)