USD Outlook: Greenback Attempts Recovery After Tax Bill Passes – EUR/USD, GBP/USD, USD/CAD, USD/JPY Analysis

📊 U.S. Dollar Index (DXY) Rebounds on Legislative Progress, But Bearish Trend Intact

The U.S. Dollar Index (DXY) posted a modest rebound Thursday following three straight days of losses. The recovery came after the House passed President Trump’s sweeping tax and spending bill, a move that offered short-term support to the greenback.

However, the broader trend remains bearish as the DXY trades below key moving averages, with structural concerns still dominating sentiment. The legislation is expected to add nearly $4 trillion to the U.S. debt load, which has rattled bond markets and spurred a weak 20-year Treasury auction—further eroding investor confidence.

DXY Key Levels
Resistance: 100.32 → 100.48
Support: 99.33 → 98.94

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🇪🇺 EUR/USD Forecast: Trend Holds Despite PMI Weakness

EUR/USD continues to hold above key moving averages, confirming an ongoing uptrend, even as Eurozone PMI data reflected contracting business activity.

Support from weak U.S. data, soft Treasury demand, and fiscal uncertainty in the U.S. has kept the euro resilient despite mixed fundamentals.

EUR/USD Key Levels
Resistance: 1.1328 → 1.1374
Support: 1.1235 → 1.1222

The euro remains firm while the dollar’s recovery struggles to gain momentum.

📌 Latest EUR/USD analysis here

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🇬🇧 GBP/USD Outlook: Sticky Inflation Supports Sterling Strength

GBP/USD continues its climb, buoyed by persistent UK inflation, which has reduced expectations for near-term Bank of England rate cuts. The pair trades comfortably above moving averages, with a steady uptrend intact.

Meanwhile, investor caution around U.S. fiscal risks, post-tax bill approval, has limited dollar upside.

GBP/USD Key Levels
Resistance: 1.3478 → 1.3536
Support: 1.3346 → 1.3327

With UK inflation data remaining hot, the pound retains a bullish edge.

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🇨🇦 USD/CAD Forecast: Loonie Gains on Oil Stability, Budget Strength

USD/CAD remains under pressure, extending its downtrend as oil prices stabilize and Canada’s fiscal outlook remains more stable compared to the U.S. The pair has failed to regain moving average support, with traders leaning bearish on the greenback amid deepening deficit fears.

USD/CAD Key Levels
Resistance: 1.3885 → 1.3929
Support: 1.3824 → 1.3760

Canadian dollar strength reflects economic stability and relative optimism compared to the U.S. backdrop.

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🇯🇵 USD/JPY Analysis: Rebound Capped, Bearish Trend Holds

The USD/JPY pair continues to struggle below resistance, with gains limited despite a pause in U.S. yield declines. The 144–146 range remains a barrier as markets monitor possible BoJ intervention amid growing yen volatility.

Support remains vulnerable as U.S. debt concerns and rate expectations weigh on the greenback.

USD/JPY Key Levels
Resistance: 145.50 → 146.60
Support: 143.03 → 142.80

USD/JPY’s downside risk persists unless key resistance levels are breached.

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🔎 Summary: Dollar Recovers, But Risks Remain Across Majors

Pair	Trend	Key Driver
EUR/USD	Bullish	Weak DXY, resilient structure
GBP/USD	Bullish	UK inflation, dovish Fed outlook
USD/CAD	Bearish	Oil stability, stronger CAD fundamentals
USD/JPY	Bearish	BoJ vigilance, capped U.S. yield rebound

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