In the current market, there has been a notable recovery wave for the EUR/USD pair. The pair started this recovery wave above the 1.0710 resistance level, indicating a positive movement. This recovery wave has allowed the pair to move into a short-term positive zone. Additionally, on the 4-hour chart, a major bearish trend line with resistance at 1.0725 was cleared, further supporting the idea of a positive trend for the Euro against the US Dollar.
On the other hand, GBP/USD is experiencing some resistance near the 1.2680 zone. Despite remaining stable above the 1.2600 support level, the pair is facing multiple hurdles in surpassing the 1.2680 zone. This indicates that further analysis and monitoring are required to determine the potential direction of this currency pair.
It is forecasted that the US ISM Manufacturing Index could remain below 50.0 at 49.0 in June 2024. This prediction suggests a potential continuation of the current economic trends within the manufacturing sector of the United States. This information is crucial for understanding the broader economic landscape and its potential impact on currency exchange rates.
In terms of technical analysis, the EUR/USD pair has shown promising signs of a positive movement. With a clear move above the 38.2% Fib retracement level and the 1.0710 resistance, the pair is now facing resistance near the 1.0760 zone. Moreover, the presence of the 100 simple moving average adds another level of resistance to the pair’s movement. To further strengthen the positive outlook, the pair will need to surpass the 1.0800 resistance and the 200 simple moving average. This could potentially lead to a higher target of 1.0850 and even 1.0920 in the upcoming days.
Several key economic releases are expected in the near future, including the Euro Zone Manufacturing PMI, UK Manufacturing PMI, and the US ISM Manufacturing Index for June 2024. These forecasts provide valuable insights into the ongoing economic conditions in different regions and can significantly impact currency movements. It is essential for traders and investors to closely monitor these releases to make informed decisions in the forex market.
The current market trends and technical analysis indicate mixed signals for currency pairs such as EUR/USD and GBP/USD. While there are positive indicators for the Euro against the US Dollar, the presence of resistance levels and economic forecasts requires careful consideration and analysis. By staying updated on the latest developments and utilizing technical analysis tools, traders can navigate the currency market more effectively and make informed trading decisions.