07.06.2021 10:50 AM
Trading recommendations for starters of EUR/USD and GBP/USD on June 7, 2021

Here are the details of the economic calendar for June 4:

Last Friday, the United States Department of Labor published its monthly labor market report for May. The report pointed to the ongoing economic recovery in the country, but speculators decided to play the statistics differently, which is quite illogical in the context of fundamental analysis.

Based on the published data, America's unemployment declined from 6.1% to 5.8% against the forecast of 5.9%. The number of new jobs created outside agriculture was 559 thousand, which is quite good compared to April. The share of the economically active population in May was 61.6%, which is one-tenth of a percent less than in April.

The slight divergence in new jobs, as well as the share of economic activity, should not have reflected a strong reaction to the US dollar in terms of its sell-off, but it happened and indicates local speculative interest contrary to fundamental analysis.

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Analysis of trading charts from June 4:

The EUR/USD pair showed a quite high speculative interest during the start of the US trading session last Friday, which coincided with the publication of US statistics.

The price's sharp growth returned the quote to the area of the previously broken level of 1.2160, where stagnation was formed.

The trading recommendation on June 4 considered extending the decline, but only after holding the price below the level of 1.2100. According to the result, the level of 1.2100 did not break down. There were no open sell positions. Traders considered buy positions as a signal of the local oversold euro.

The GBP/USD pair increased, but it is worth considering that the quote still follows within the borders of the previously established side channel 1.4100/1.4240, where there was a rebound from the lower border with a movement towards the average level of the channel of 1.4172.

The trading recommendation on June 4 considered the scenario of a possible breakdown of the channel along a downward trajectory, but to confirm the theory of the quotes, it was necessary to hold below the level of 1.4080, where sell positions would be opened.

The price was not kept below the level of 1.4080, which means that the scheme of working on the rebound was still relevant.

Trading recommendation for EUR/USD and GBP/USD on June 7, 2021

Today's economic calendar is empty just like almost every Monday, so traders carefully monitor the information flow in the media for force majeure news, and also work on the basis of technical analysis.

Looking at the EUR/USD trading chart, a fairly narrow price fluctuation can be seen compared to the dynamics in the period of June. The key coordinates, relative to which the growth of trading volumes is possible, are considered to be the levels of 1.2140 in the case of a downward development, and 1.2185 in the case of upward development.

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As for the trading chart of the GBP/USD, it shows that the price rebound from the average level of 1.4172 almost managed to return sellers to the lower border of the side channel, where a reduction in the volume of short positions occurred again.

The tactics of trading on the basis of consecutive rebounds are still relevant among traders, but due to the safety net, it is worth considering the strategy of breaking a particular border of the side channel.

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Gven Podolsky,
Analytical expert of InstaForex
© 2007-2024
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