Will the US dollar extend its early December rebound, or has the 2024 peak already formed?
Watch today’s forex forecast for insights on the DXY, EURUSD, GBPUSD, USDCAD, and USDCHF.
US Dollar Index (DXY) Forecast
The DXY remains bullish after retesting the October 2022 trend line on December 6.
As regular readers know, I’ve been bullish on the US dollar since it reclaimed 102.60 in October.
While the DXY has gained over 6% since the September low, I believe the rally still has room to run.
My long-term target for the DXY remains 109.00 to 110.00.
That said, the recent 108.00 high is likely to attract sellers, which could keep the DXY in a sideways range for now.
EURUSD Forecast
EURUSD has played out exactly as expected based on my last analysis.
The pair hit my year-end target of 1.0350 in November after breaking below 1.0760.
It also swept the 1.0600 highs before dropping back into the range, a move I highlighted in the previous video.
For now, EURUSD remains range-bound between 1.0450 and 1.0615.
A daily close below 1.0450 would expose 1.0350, while a close above 1.0615, especially 1.0670, could target 1.0770.
I lean toward a breakdown, but EURUSD may continue ranging above 1.0450 for now.
GBPUSD Forecast
GBPUSD presented a great short opportunity in November after breaking below 1.2850.
The target was the 2022 trend line support near 1.2550, which the pair reached.
Since then, GBPUSD has consolidated and filled the November 12 imbalance around 1.2800.
From here, a bounce is possible, given the significance of the 1.2600 support area.
This aligns with the DXY consolidating below 108.00 as the holiday season approaches.
USDCAD Forecast
USDCAD has reached my initial target of 1.4265.
This move followed the weekly close above 1.3870 in late October, which confirmed a breakout from a two-year consolidation pattern and set up 1.4265 as the next key resistance.
From here, USDCAD may pull back or consolidate below resistance before continuing higher.
I remain bullish on USDCAD over the coming months, with a longer-term target near the top of its multi-year channel at 1.4650, though some consolidation could occur first.
USDCHF Forecast
USDCHF is finding support this week at a weekly trend line from November 2022.
The level was tested earlier on Monday near 0.8900.
As long as USDCHF holds above this level on the daily time frame, I favor a move toward the 0.9000 weekly pivot.
A weekly close above 0.9000 would target the multi-year range highs at 0.9150.
On the other hand, a daily close below 0.8890 would negate the bullish bias and expose support at 0.8730.
