Forex Market Overview – May 1, 2025: USD Recovers Slightly, EUR and GBP Dip

On May 1, 2025, the forex market witnessed mixed movements across major currency pairs, with the U.S. Dollar (USD) showing signs of mild recovery, supported by a slight uptick in the DXY Index.

Market Highlights:

Analysis and Commentary

EUR/USD edged down to 1.1323, continuing its bearish momentum after failing to hold above the 1.1350 resistance zone. This movement reflects lingering market caution amid weak Eurozone inflation data.

USD/JPY declined slightly despite USD strength, suggesting minor risk-off sentiment in Asia. The pair is still consolidating above 142.50, a key technical support.

GBP/USD retreated to 1.3319 after a modest gain yesterday. With no major UK economic releases today, traders are positioning based on USD flows.

AUD/USD rose 0.12% to 0.6410, supported by upbeat Chinese PMI data and stronger risk appetite across Asian equity markets.

DXY Index climbed to 99.62 (+0.16%), indicating the greenback’s modest comeback, potentially on the back of month-start repositioning.

Trading Suggestions (Short-Term Technical Outlook)

EUR/USD: Look for sell opportunities below 1.1350, targeting 1.1280. Bearish bias remains unless the pair breaks above 1.1370.

USD/JPY: Buy on dips near 142.50 with short-term targets at 143.50. Consider stop-loss below 142.20.

AUD/USD: Potential for a short-term bounce toward 0.6450 if 0.6400 holds. Watch China’s data closely.

⚠️ Always use proper risk management and track key macroeconomic updates before entering trades.

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