Focus on EURUSD today – 7th June, 2024

In this comprehensive analysis, Ultima Markets brings you an insightful breakdown of the EURUSD for June 7, 2024.

Key Takeaways

• Weak employment: Initial Jobless Claims rose to 229,000, slightly higher than the forecasted reading of 220,000. Recent report shows that US companies are planning to reduce its hiring to its lowest level in a decade as of May.
• ECB rate cut: The European Central Bank cut its interest rates by 25 basis points yesterday, its first rate cut since 2019 while raising inflation expectation. In addition, officials ruled out the possibility of a second rate cut in July.
• NFP tonight: Market participants are currently waiting for the US Nonfarm Payrolls report due later today which may provide further signal on the trend direction of EURUSD.

Technical Analysis

Daily Chart Insights

• Stochastic Oscillator：The indicator did not effectively break below the 50 median line, but instead sent a long signal above. This was also emphasized in the analysis at the end of May. The short trend can only be paid attention to when the slow line breaks below the 50 median line. However, yesterday, it was suspected that a short signal was sent before entering the overbought area, suggesting that there is still uncertainty in the current long and short positions.
• Price Action: The pair rose substantially after rebounding from the moving averages and broke through the previous high. It is worth noting that the breakout indicated in the red box illustrates prominent bullish bias, which to a certain extent indicates that the short-term bulls are strong.

1-hour Chart Analysis

• Stochastic oscillator: Although the pair has never fallen below the 200-MA line, the recent trend is basically based on the short-term moving average group as the central axis, oscillating within a price range, suggesting that the current trend may persist.
• Wolfe wave structure: The price trend of EUR/USD is suspected to form a Wolfe wave pattern. Point 5 touches the ray connecting points 1 and 3 and runs downward. It is currently blocked by the short-term moving average group. If the pair closes below the moving averages, the first target will look at point 4 near 1.08623, and the second target will look at the ray connecting points 1 and 4.

Pivot Indicator

• According to the trading central in Ultima Markets APP, the central price of the day is established at 1.0879,
• Bullish Scenario: Bullish sentiment prevails above 1.0879, first target 1.0910, second target 1.0919;
• Bearish Outlook: In a bearish scenario below 1.0879, first target 1.0864, second target 1.0855.

Conclusion

To navigate the complex world of trading successfully, it’s imperative to stay informed and make data-driven decisions. Ultima Markets remains dedicated to providing you with valuable insights to empower your financial journey.

For personalized guidance tailored to your specific financial situation, please do not hesitate to contact Ultima Markets.

Join Ultima Markets today and access a comprehensive trading ecosystem equipped with the tools and knowledge needed to thrive in the financial markets.

Stay tuned for more updates and analyses from our team of experts at Ultima Markets.

—–

Legal Documents

Ultima Markets, a trading name of Ultima Markets Ltd, is authorized and regulated by the Financial Services Commission “FSC” of Mauritius as an Investment Dealer (Full-Service Dealer, excluding Underwriting) (license No. GB 23201593). The registered office address: 2nd Floor, The Catalyst, 40 Silicon Avenue, Ebene Cybercity, 72201, Mauritius.

Copyright © 2024 Ultima Markets Ltd. All rights reserved.

Disclaimer  

Comments, news, research, analysis, price, and all information contained in the article only serve as general information for readers and do not suggest any advice. Ultima Markets has taken reasonable measures to provide up-to-date information, but cannot guarantee accuracy, and may modify without notice. Ultima Markets will not be responsible for any loss incurred due to the application of the information provided.