USD Price Action Setups: EUR/USD, GBP/USD, USD/JPY, Gold

US inflation printed marginally below expectations, with core CPI at 2.6% versus a 2.7% forecast. Despite that, the US dollar remains firmer on the session, having erased much of its early-week weakness. The softer inflation outcome has not been enough to shift near-term dollar sentiment, particularly as broader risk appetite stabilises.

Over the weekend, markets reacted to reports that the Department of Justice had opened a criminal inquiry into Jerome Powell’s summer testimony related to Fed renovations. Powell addressed the issue directly in a video released Sunday night, framing it as an attack on Fed independence. Since then, the White House has distanced itself from the probe, and with only four months remaining before a new Fed chair can be appointed, the incentive for a forced ouster appears limited. Against that backdrop, the US dollar retains a short-term bullish bias as much of the prior sell-off has been retraced.

Technically, DXY is already approaching resistance near 99.31. Beyond that, the more significant level remains 100.22, which capped rallies repeatedly in the second half of last year. A decisive break above that zone would be required to confirm broader bullish control.

On the weekly chart, the longer-term structure remains constructive. The bulk of last year’s dollar sell-off occurred in the first half of 2025, while more recent price action has been defined by a sequence of higher lows. The latest weekly candle shows a pronounced lower wick, suggesting dip buying remains active and a push back toward recent highs is possible. Whether that develops further will likely depend on euro performance.

DXY Weekly Chart

EUR/USD

The euro continues to play a central role in shaping broader FX trends. EUR/USD respected key structure last week, finding support near 1.1616 before bouncing. That recovery has since been faded, with sellers defending the 1.1686 and 1.1669 areas.

On the downside, initial support lies around 1.1593 to 1.1600. Below there, 1.1542 to 1.1550 comes into focus, with the broader 1.1500 zone remaining the major medium-term support level.

EUR/USD Daily Chart

GBP/USD

GBP/USD remains a preferred vehicle for expressing potential USD weakness. The pair has found support at the 1.3390 Fibonacci level on consecutive sessions, keeping the possibility of a higher-low formation near 1.3414 intact. Holding above this zone is important for maintaining bullish continuation risk.

GBP/USD Daily Chart

USD/JPY

USD/JPY continues to reflect dollar strength, pushing to fresh yearly highs. While the approach toward the 160 handle increases intervention risk, there is still little technical evidence to justify fading the trend at this stage.

Instead, former resistance levels are key reference points for potential higher-low support. The horizontal zone around 159.19, which capped price during the prior ascending triangle, remains an important area to monitor.

USD/JPY 4hour Chart

Gold

Gold continues to reinforce its longer-term bullish structure, printing another all-time high earlier today. However, price has yet to show sustained acceptance above the 4600 area, suggesting pullbacks remain more attractive than chasing strength.

Initial support is located near 4575, followed by 4550. The 4500 region remains a major technical level, having acted as clean resistance previously and not yet been confirmed as support.

XAU/USD 4hour Chart