Daily Technical analysis for June 07, 2021petar skakalov
Current level – 1.2160
After the report on new job openings in the U.S. disappointed the markets, the dollar lost ground and the pair closed last week just below the resistance of 1.2170. Expectations that the Federal Reserve will not tighten its policy soon encouraged the bulls and it is possible for the pair to head towards the resistance zones around 1.2207 and 1.2244. The EUR/USD has reached a turning point – after the initial pause in the uptrend, the pair formed a new bottom around the support at 1.2106. If the market is to form a lower high now, it is possible that the sell-offs will intensify and the trend could reverse. Confirmation is needed for the realisation of this scenario, and for now the fundamentals are in favor of the bulls. Overcoming the resistance at 1.2244 may pave the way towards the highs of 2018 at around 1.2540. This week, the most significant event for the pair is the announcement of the inflation rate for the United States on Thursday at 12:30 GMT.
Current level – 109.55
The pair could not stay above the resistance at 110.18 and after the initial aggressive sell-offs, the USD/JPY breached the support at 109.74 and tested the next support at 109.36. Bearish pressure may continue this week as well and with a breach of 109.36, we can expect a test of the key support at 108.56. In case it fails to hold the market, new sell-offs towards 107.50 and 106.10 can exacerbate further. In an alternative scenario, trading may continue in the range between 108.56 and 110.18.
Current level – 1.4141
The Cable continues to trade in the narrow range between 1.4100 and 1.4210 and last week’s attempt to breach the lower band was successfully thwarted. The bulls are likely to try to attack the 1.4210 resistance next. The trend on the higher time frames is not violated and despite the mixed moods, the expectations are for a resumption of the move and an attack on the 1.4400 resistance. Key daily support the market can expect in the area between 1.4080-1.4100.
Gold price resumes the rise
Gold price achieved good gains on last Friday to settle around the EMA50, reinforcing the chances of continuing the bullish trend in the upcoming sessions, noting that our next target is located at 1928.60.
Stochastic current negativity might cause some temporary sideways fluctuation before resuming the expected rise, which will remain valid unless breaking 1861.50 and holding below it.
The expected trading range for today is between 1870.00 support and 1910.00 resistance.
The expected trend for today: Bullish
Source: Technical analysis