The EUR/USD pair has recently started a recovery wave above the 1.0710 resistance level, indicating a positive trend in the short term. The pair successfully cleared a major bearish trend line with resistance at 1.0725 on the 4-hour chart, which further supported the bullish momentum. However, despite the positive movement, the pair is currently facing resistance near the 1.0760 zone and the 100 simple moving average on the 4-hour chart. The presence of the 50% Fib retracement level and the 200 simple moving average as additional resistance levels suggests that further upward movement may be limited in the near future.
The next significant resistance level for EUR/USD is at 1.0800, followed by the 200 simple moving average situated at the same level on the 4-hour chart. A decisive break above the 1.0800 resistance could potentially propel the pair towards the 1.0850 level, with subsequent gains opening the path for a test of the 1.0920 zone in the upcoming days. On the downside, immediate support is seen near the 1.0730 level, with a more substantial support level at 1.0700. A bearish breakout below the 1.0700 support zone could trigger a more significant decline, potentially leading the pair towards retesting the 1.0665 level.
Turning attention to GBP/USD, the pair has maintained stability above the 1.2600 support level but faces multiple resistance hurdles near the 1.2680 zone. The presence of these obstacles suggests that upward movement for GBP/USD may also be constrained in the short term.
In terms of economic releases, the Euro Zone Manufacturing PMI for June 2024 is forecasted to remain unchanged at 45.6, indicating stagnant growth in the manufacturing sector. On the other hand, the UK Manufacturing PMI for the same period is expected to show a slight increase to 51.4 from the previous 51.4, signaling modest growth. Lastly, the US ISM Manufacturing Index for June 2024 is anticipated to rise to 49.0 from the previous 48.7, hinting at potential improvement in the US manufacturing industry.
While the EUR/USD pair has shown signs of a recovery wave, the presence of multiple resistance levels suggests that further upward movement may be limited. Additionally, economic releases for June 2024 provide a mixed outlook for the Euro Zone, UK, and US manufacturing sectors, indicating potential challenges ahead for these economies.
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