Forex Market Analysis Today [2024.07.04]: Impact of UK Election and US Independence Day on Major Currency Pairs

Hello, Welcome to Forex Market Analysis Today!

• EURUSD: Bouncing back from the major trend line, heading towards resistance around 1.09000.
• USDCAD: Was in an uptrend, but now it seems like the price has broken the support.
• USDJPY: In an uptrend and has broken above the major resistance level around 160.
• USDCHF: Trending down, currently in a correction and trying to reverse.
• GBPUSD: Was dropping but has now started to go back up, currently around the major resistance level.
• AUDUSD: Was consolidating, but now it seems like it has broken above the resistance level.
• NZDUSD: Was dropping, but now it seems to be pulling back up.

Key Economic Events Today

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

• Today, the UK is holding a parliamentary election where voters will choose 650 members for the United Kingdom’s Lower House of Parliament. This event will impact GBP currency pairs.
• It’s also the United States Independence Day, so all banks and exchanges are closed. As a result, USD pairs will experience lower liquidity and unusual volatility.

EURUSD:

Looking at EURUSD, the price is bouncing back up from the major trend line and is now heading towards the resistance around 1.09000.

Looking at the 1-hour chart, the price pulled up, went into a correction, and is now consolidating. It’s trying to go back up, and we can expect the price to continue rising. However, be cautious of the price breaking below the support again. Today, the price will likely consolidate and stay in place because the US markets are closed.

USDCAD:

Looking at USDCAD, it was in an uptrend, but now it seems like the price has broken the support.

Looking at the 1-hour chart, you can clearly see that the price broke below the support level. Now, the price is consolidating. We can expect the price to keep dropping, but there is also a chance it might pull back up to the support and then drop again.

USDJPY:

Looking at USDJPY, it is in an uptrend and has broken above the major resistance level around 160.

Looking at the 1-hour chart, the price is consolidating. We can expect the price to continue going up, but today will be a slow market.

USDCHF:

Looking at USDCHF, it is trending down, but currently, it’s in a correction and is trying to reverse.

Looking at the 1-hour chart, the price reached a resistance level and started to reverse. It then went to a support level and pulled back up due to news. Now, we can expect the price to drop from this level. If the price breaks above the resistance, it is more likely to continue going up, but that may not happen today.

GBPUSD:

Looking at GBPUSD, it was dropping but has now started to go back up. It is currently around the major resistance level.

You can see the upward momentum, and we can expect it to continue. However, today might be more of a consolidation day rather than a momentum-driven day.

AUDUSD:

Looking at AUDUSD, it was consolidating, but now it seems like it has broken above the resistance level.

Looking at the 1-hour chart, you can see that the price broke the resistance, pulled back to that level, and started to go back up. We can expect this momentum to continue to the next resistance level, but keep in mind that today’s market will be slow

NZDUSD:

Looking at NZDUSD, it was dropping, but now it seems to be pulling back up.

Looking at the 1-hour chart, you can see that the price is near a resistance level. We can expect the price to either pull back from there or break above the resistance and continue going up, so watch out for breakouts.

Conclusion & Disclaimer

Keep in mind that the US market is closed today, so there will be very low liquidity. Trading setups might not work as expected. If I were you, I wouldn’t bother trading today. There are always new opportunities coming. You can make money in the financial market in three ways: buying, selling, or staying in a neutral position. Sometimes, to make money, you just have to avoid losing money.

Please provide your feedback on how we can improve this article. Thank you!

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.

GOOD LUCK✌!!!