Forex Market Analysis Today [2024.06.05]: Many Potential Breakouts

Hello, Good Morning. Welcome to Forex Market Analysis Today. It’s June 5, 2024, Wednesday. Let’s see what the forex market has for us today.

I want to remind you why I share these news articles. They are not meant to tell you what decisions to make. Instead, they show how I make decisions when trading. By following these articles over time, you’ll learn about price action trading.

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.

Around 9:45 AM, Canada will release its monetary policy statement, which usually causes big changes for CAD pairs. At around 10:00 AM, the US ISM Services PMI will be released. This event doesn’t cause as much volatility as the monetary policy or FOMC statements but still affects currency pairs. Besides these, there are no major events today.

EURUSD:

Looking at EURUSD, it’s still showing a bullish trend and might reach at least the 1.09450 level. On the 1-hour chart, you can see that the price broke the resistance level around 1.08900, went up, and then dropped back down. There is a medium-term uptrend, and a support level is indicated by the sloped trend line.

If the price breaks above the 1.08900 level again, we can expect EURUSD to continue rising. However, if the price breaks below the support line, it might drop further, possibly down to the red trend line shown on the daily chart.

USDCAD:

Looking at USDCAD, the uptrend is now turning into more of a sideways trend. On the 1-hour chart, you can see that 1.36000 and 1.37400 are strong support and resistance levels. Right now, the price is trending upward, so it might climb to the 1.37400 level and then either correct or break that level and keep rising. On the other hand, the price might drop to the 1.36000 support level. If it breaks that level, it could fall even further to the next strong support level.

USDJPY:

Looking at USDJPY, it’s trading around a strong support level. On the 1-hour chart, 154.500 and 156.500 are key support levels. The price might pull back from the 156.500 level or break it and continue up to at least 157.500. If the price breaks below the 154.500 support level, we can confirm that the trend has changed to a downtrend.

USDCHF:

Looking at USDCHF, after the price broke the 0.90000 support level, it continued down to the next support around 0.88900. It seems like the price is now correcting. If the price goes up, it should find resistance around 0.90000 and might start to drop from there. If the price breaks above 0.90000, it could continue up to the next resistance level. On the other hand, if the price breaks below 0.88900, it could keep dropping to the next support level, possibly around 0.87000.

GBPUSD:

Looking at GBPUSD, it’s still in an uptrend and trading around the 1.28000 resistance level. On the 1-hour chart, you can see that the price is in an uptrend and broke the resistance level but then dropped back down, indicating a false breakout. If the price breaks above 1.28000, and specifically over 1.28300, we can expect it to continue up to 1.29000. However, if the price breaks below the trend line on the 1-hour chart, it might drop further to the next strong support level around 1.27000.

AUDUSD:

Looking at AUDUSD, after the uptrend, it’s now moving sideways. The strongest support is around 0.66000 and the strongest resistance is around 0.67200. We can expect the price to stay within these levels. If the price breaks either of these levels, it will likely move in the direction of the breakout.

NZDUSD:

Looking at NZDUSD, it’s in an uptrend. The strongest support is at 0.60850 and the strongest resistance is at 0.62150. On the 1-hour chart, you can see the price is trending up. We can expect the price to reach the resistance level and possibly pull back, or it could break that level and continue rising to the next resistance.

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.

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!!!