Forex Market Analysis Today [2024.06.19]: Price Action Trading for Major FX Pairs

Hi, Welcome to Forex Market Analysis Today!

Today’s analysis covers major currency pairs with a focus on price action trading. Keep an eye on significant global events influencing market sentiment. Notably, US banks are closed for Juneteenth, affecting liquidity and volatility in USD pairs. Additionally, New Zealand’s quarterly GDP report.

Stay informed as we delve into detailed insights for each currency pair, analyzing key support, resistance levels, and potential breakout scenarios shaping today’s forex market dynamics.

Key Trading Events Today

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

• US banks will be closed in observance of Juneteenth expect low liquidity and irregular volatility in USD pairs.
• New Zealand’s quarterly GDP report is released around 6:45 PM. This event causes high volatility in NZD currency pairs.

EURUSD:

Looking at EURUSD, it’s trading above the red line, so we can’t be sure about the trend. It should have gone down but pulled back. Today’s momentum will confirm the trend. For now, the major support is around 1.06000 and the major resistance is around 1.09000.

Now, looking at the 1-hour chart, you can see upward momentum shown by the green line. Overall, the price should fall because it broke the red line before. But now, it’s moving up inside the red line. If the price keeps going this way, we can say the breakout was fake and the price is heading up. However, if the price breaks below the green trend line, it’s more likely to fall to the next support.

USDCAD:

Looking at USDCAD, it’s on an uptrend. The lower trend line acts as major support for the price. As we said yesterday, there are two resistances for the price: one around 1.38000 and another indicated by the line.

Now, looking at the 1-hour chart, you can see the price started to go down after reaching the resistance level around 1.38000. There is support around 1.36800. We can expect the price to drop to that level and then go back up again. But keep in mind, if there’s a breakout at these levels, the price will move in the direction of the breakout.

USDJPY:

Looking at USDJPY, it is also in an uptrend. The big sloping trend line showing the uptrend acts as major support for the price, and the major resistance is around 160.

Looking at the price action on the 1-hour chart, each time the price reached the support level, it bounced back up. If the price returns to that range again, we can expect a similar reaction. Since the overall trend is upward, we anticipate the price will continue to rise.

However, there is resistance where the price is currently trading. If the price breaks above this level, we can expect it to move towards the next resistance. Alternatively, it might pull back from this level to the support and then resume its upward movement.

But remember, if the price breaks below the support level, the overall trend could shift to either sideways or downtrend.

USDCHF:

Looking at USDCHF, it has broken below the support line, indicating it’s now in a downtrend. The next support level for the price is around 0.87500.

Looking at the price action on the 1-hour chart, after breaking below the support level, the price dropped slightly and is now consolidating. We can expect two scenarios: either the price corrects upwards to around 0.89000, touches the trendline, and then falls back; or it continues falling from its current level.

Keep in mind that since the support level is now broken, it acts as a resistance level. If the price returns to that level, it could turn into a support again. This change also affects the overall trend, so watch out for any breakouts.

GBPUSD:

Looking at GBPUSD, after reaching the resistance level around 1.28100, it pulled back down and is now consolidating.

Now, looking at the price action on the 1-hour chart, you can see that after the price reached the support level around 1.26500, it started to move back up. We can expect the price to head towards the resistance level around 1.28000, with potential pullbacks along the way.

Also, keep in mind that if the price breaks through any of these support or resistance levels, it will confirm the future trend.

AUDUSD:

Looking at AUDUSD, it’s currently trading sideways, with a major support around 0.65500 and a major resistance around 0.67150.

Now, looking at the 1-hour chart’s price action, you can see the price trading around a resistance level. We can expect the price to either pull back from this level and decline, or if the momentum is strong, it could break through this level and aim for the next resistance before falling back.

Given the current consolidation period, a breakout seems likely soon. The direction of this breakout will determine the future trend, so be vigilant for any breakout movements.

NZDUSD:

Looking at NZDUSD, it’s also moving sideways, with the strongest support around 0.61000 and the strongest resistance around 0.62150.

Now, looking at the price action on the 1-hour chart, you can see that after the price reached the support level, it bounced back up and is now heading upwards. We can expect the price to continue in this direction.

However, today NZD is releasing its GDP report, which is a highly volatile news event for this pair. Because of this, we anticipate a potential breakout today, and the price will likely move in the direction of the breakout.

Please leave comments on how we can further improve this article. Thank you!

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!!!