Forex Market Analysis Today [2024.07.02]: Fed Chairman Powell’s Speech and Key Levels to Watch

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• EURUSD: Consolidating near the trend line with support at 1.06000 and resistance at 1.09000.
• USDCAD: In an uptrend, with support at 1.36800.
• USDJPY: Uptrend above 160 resistance, now support.
• USDCHF: Trending down but correcting near 0.90000 resistance.
• GBPUSD: Pulling back from 1.28100 resistance, heading toward 1.25000 support.
• AUDUSD: Consolidating with support at 0.65800 and resistance at 0.67000.
• NZDUSD: Broke support, heading toward 0.59000.

Key Economic Events Today

These events encompass important global news, macroeconomic reports, and economic indicators. For more details, you can check the forex factory.

• At 9:30 AM ET, Fed Chairman Powell will speak. He might give hints about future interest rates, which often makes USD pairs very volatile.

EURUSD:

Looking at EURUSD, the trend is still unclear. The price is near the major trendline, with strong support around 1.06000 and major resistance at 1.09000.

Looking at the 1-hour chart, you can see the price broke above the resistance but then fell back and is now trading around a support level. This breakout is definitely false. Now, if the price breaks below this support, we can expect it to continue down to the next support around 1.06750. On the other hand, the price might bounce from where it is now and start going up, breaking the resistance again.

USDCAD:

Looking at USDCAD, it’s uptrending. The trendlines on the chart act as major support and resistance for the price.

Looking at the 1-hour chart, you can see the price pulling back from the support. We can expect the price to continue going up, or it might pull back to the support area again before rising. Keep an eye out for breakouts.

USDJPY:

Looking at USDJPY, it’s uptrending and has broken its major resistance level around 160, continuing to go up.

Looking at the 1-hour chart, you can see the price is uptrending with support around the 160.250 level. We can expect the price to continue going up, with some corrections along the way.

USDCHF:

Looking at USDCHF, after breaking the uptrend, it started to drop. Now it seems like it’s in a correction and has even broken above the resistance around 0.90000.

Looking at the 1-hour chart, you can see the price is nearing a resistance level. We could expect a pullback from there, or it might break above that level and continue going up.

GBPUSD:

Looking at GBPUSD, it’s in a downtrend, with the next major support around 1.25000.

Looking at the 1-hour chart, you can see the price is around a support level. If it breaks below this level, we can expect the price to go down to the trendline and possibly pull back from there. If it breaks that line too, we can expect the price to continue down to the major support at 1.25000.

AUDUSD:

Looking at AUDUSD, it’s consolidating between 0.67000 and 0.65750.

Looking at the 1-hour chart, you can see the price is around a support level. If it breaks below this level, we can expect it to continue down to the next support around 0.65750. On the other hand, the price might pull back from its current level and go up to the resistance. If it breaks the 0.66800 level, the price will head to 0.67000 and might pull back from there.

NZDUSD:

Looking at NZDUSD, it’s pulling back from the 0.62200 level and is in a downtrend.

Looking at the 1-hour chart, you can see the price is at a low level. We can expect a pullback before continuing the downtrend, or it could break below this level and keep going down.

Conclusion & Disclaimer

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These analyses are here to help you understand how to analyze the market. They’re not about giving buy or sell signals. It’s simply about observing price action market behavior. I don’t recommend when to buy or sell because trading doesn’t work that way. You need a strategy to guide your decisions about when to enter or exit positions. That’s the key to making consistent profits in the financial markets over time.

The information provided in this market analysis is for educational and informational purposes only. It should not be construed as financial advice or a recommendation to buy, sell, or hold any securities or investments.

All investments involve risk, and past performance is not indicative of future results. The analysis provided may not be suitable for all investors and should be used at their own discretion.

Readers are encouraged to conduct their own research.

Trading and investing in financial markets carry inherent risks, including the risk of losing invested capital. It is important to carefully consider your investment objectives, risk tolerance, and financial situation before making any investment decisions.

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