The EUR/USD pair has initiated a recovery wave above the 1.0710 resistance level. This recovery wave has prompted the pair to move into a short-term positive zone. One significant development is the clearing of a major bearish trend line with resistance at 1.0725. Furthermore, there has been a move above the 38.2% Fib retracement level, signaling a potential uptrend. However, the pair is currently facing resistance near the 1.0760 zone and the 100 simple moving average on the 4-hour chart. The next obstacles include the 50% Fib retracement level and the 200 simple moving average at the 1.0800 level. A definitive breach above 1.0800 could propel the pair towards the 1.0850 level, with further gains potentially targeting the 1.0920 zone. On the downside, immediate support rests at 1.0730, followed by a major support level at 1.0700. A breach below 1.0700 could trigger a larger decline, possibly testing the 1.0665 level.
In contrast, the GBP/USD pair has faced resistance near the 1.2680 zone despite remaining stable above the 1.2600 support level. This resistance poses a significant hurdle for the pair’s upward movement. Overcoming this obstacle is crucial for any further bullish momentum in the GBP/USD pair.
Various economic indicators are set to be released, providing insight into the market conditions. The Euro Zone Manufacturing PMI for June 2024 is forecasted at 45.6, while the UK Manufacturing PMI is expected to be 51.4. In the United States, the ISM Manufacturing Index for June 2024 is projected to remain at 49.0, slightly above the previous reading of 48.7. These economic releases will play a crucial role in shaping the market sentiment and influencing the direction of the EUR/USD and GBP/USD pairs.
The forex market is experiencing dynamic movements, with the EUR/USD pair showing signs of a recovery wave while the GBP/USD pair faces resistance challenges. Traders and investors need to closely monitor key technical levels and economic indicators to make informed decisions in the ever-changing market environment.