Technical Scope: The Sideways trading continues

Technical Analysis Today: DXY, EUR/USD, GBP/USD & Gold Outlook

Welcome to today’s edition of The Technical Scope, your twice-weekly guide to the evolving landscape of global markets through the lens of technical analysis. This report focuses on pure price action, highlighting key supply and demand zones, tracking momentum shifts, and identifying potential trading opportunities. Each edition covers major assets, offering a broad view of how currencies, commodities, and equities are performing. When market conditions present interesting setups, additional instruments will also be analyzed to provide deeper insight and actionable context.

Today’s edition presents our technical analysis of the following key assets: DXY, EUR/USD, GBP/USD & Gold.

Dollar Index

4-Hour Chart

The Dollar Index chart reveals a defined sideways consolidation pattern following its prior impulsive upward expansion. Price action has repeatedly tested the structural ceiling at the 99.550 level, where selling pressure has capped further upside momentum. Currently, the index is oscillating within a clear horizontal range, indicating a temporary equilibrium between buyers and sellers.

Traders should monitor for a continued move lower within this range, targeting the established support floor at 98.800. A failure to defend this lower boundary could signal a deeper corrective phase, whereas a sustained hold above it will keep the broader sideways structure intact.

EUR/USD

4-Hour Chart

The EURUSD chart shows the pair stabilizing within a multi-week sideways range after finding a cyclical floor near the lower green accumulation zone at 1.15830. Price action is currently consolidating post a recent minor recovery, gathering momentum for a potential continuation higher.

An extension of this short-term bullish rotation is expected to test the immediate horizontal resistance level at 1.16700. A clean breakout and daily close above this 1.16700 ceiling would validate a structural shift, opening the door for an extension toward the upper red supply zones.

GBP/USD

4-Hour Chart

As illustrated in the chart, the GBPUSD pair is displaying signs of a structural bottoming effort after firmly defending the lower green demand zone spanning between 1.33025 and 1.33228. Following this successful test of liquidity, the price action suggests a developing bullish bias with a possible move higher to retest the immediate overhead supply zone.

Traders should closely monitor the red institutional selling block situated around the psychological 1.3500 level. A decisive break through this resistance area is required to shift the short-term market structure from bearish to sustainably bullish.

Gold

4-Hour Chart

The Gold chart highlights a powerful defensive stand within the lower green demand zone, which sits around $4,420. Having thoroughly swept local liquidity and formed a macro higher-low structure, the precious metal is displaying a strong potential move higher.

If current buying momentum persists and the immediate minor resistance levels are cleared, XAUUSD is technically positioned to launch an extended, impulsive leg upward to challenge the psychological 4,600 structural milestone. A successful expansion toward this level would pave the way for a broader retest of the major red supply zone located above 4,800.