Forex Market Analysis Today [2024.06.04]: Everything Goes Backwards

Hello and welcome to our forex market analysis today. It’s Tuesday, June 4th, 2024, the second trading day of the week. Yesterday, we noticed several potential breakouts and reversals. Now, let’s review how they turned out and look at today’s market outlook.

Key Trading Events Today

These events encompass important global news, macroeconomic reports, and economic indicators. For more details, you can check the Forex Factory Economic Calendar.

At around 10:00 AM, the JOLTS Job Openings report will be released. At around 9:30 PM, the GDP data for Australia will come out. Besides these two reports, there are no major events today.

EURUSD:

Looking at EURUSD, it broke the resistance level around 1.08900, indicating it should continue to rise. However, if you look at the 1-hour chart, you can see the price is moving back into the 1.08900 area, possibly due to a correction. What we know for sure is that the overall trend is bullish, and there was an upward breakout, showing a positive market sentiment. There’s also a medium-term uptrend happening. We can expect the price to keep going up, and even if it dips a bit, it shouldn’t fall below the upward trendline on the 1-hour chart. If it does, we might need to rethink the overall upward trend. But overall, EURUSD is showing a bullish sentiment.

USDCAD:

Looking at USDCAD, the breakout we mentioned yesterday wasn’t very strong. That’s why I suggested waiting until the 1.36000 range was broken, as it’s the strongest support level. If it breaks, it will confirm the downtrend. For now, we can expect the price to possibly continue rising. There are two resistance levels on the 1-hour chart where the price might face resistance. If the price falls back to 1.36000, remember that 1.36000 and 1.37400 are currently the strongest support and resistance levels for USDCAD.

USDJPY:

Looking at USDJPY, the overall trend is still bullish, but right now the price is declining after breaking the support around the 156.500 level, which is now acting as resistance. We can expect the price to either bounce back up from the lower trend line and continue rising or, if it breaks below this lower trend line, we can confirm that the trend is changing.

USDCHF:

Looking at USDCHF, the price broke its major support level at 0.90000, which means it should keep dropping. On the 1-hour chart, it’s indeed falling. The next support level is around 0.88900, where the price might find support and bounce back up for a correction. If it breaks this level too, the price should continue dropping further.

GBPUSD:

Looking at GBPUSD, the price broke above the 1.28000 level, which suggests it should keep rising. However, the momentum isn’t very strong, so the price might go through a correction before moving up again. Note that this level is a major resistance, and market noise might have caused the breakout. If the breakout is genuine, the price should continue up to the 1.29000 level. If it corrects, it shouldn’t drop below 1.26800. If it falls below 1.26800, it might drop further to the 1.26000 and 1.25000 levels.

AUDUSD:

Looking at AUDUSD, the price seems to be consolidating, with support around the 0.66000 range and resistance around the 0.67000 range. On the 1-hour chart, it appears to be in a medium-term uptrend. We can expect the price to continue rising from this level, or it might drop to 0.66300 for support. If 0.66300 breaks, the next support is at 0.66000. Overall, the trend is bullish, but watch out for any breakouts.

NZDUSD:

NZDUSD is trading within a range of 0.60850 to 0.62150, with these levels acting as strong support and resistance. On the 1-hour chart, the price is in an uptrend. We can expect the price to either continue rising to the 0.62150 level and then possibly pull back, or to drop and break the lower trend line, heading down to the 0.60850 level. If the price breaks above 0.62150, it should keep going up. If it breaks below 0.60850, we can expect it to drop further.

Disclaimer

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.

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 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.

I discussed these sectors and markets because when the entire market or sector goes through certain movements, most of the stocks within that market will also experience similar movements. So, by understanding what the market is doing, you can conduct your own analysis on specific coins or stocks.

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.

GOOD LUCK!!!