Good Morning, Traders! | Forex Market Insights and Technical Analysis

Daily Market Summary: Yesterday, the EUR/USD pair showed a bullish bias, maintaining levels above 1.0725, supported by technical indicators and market sentiment. Meanwhile, the GBP/USD pair remained volatile, fluctuating around the 1.2700 mark following the latest UK inflation data release.

Market Sentiment: Market sentiment is cautiously optimistic. The recent rally in technology stocks, particularly driven by AI developments, has boosted risk appetite globally. However, the market remains wary of ongoing economic uncertainties and mixed data from the US.

Economic Calendar:

• 08:00 GMT: UK GDP (MoM) - Expected: 0.4%, Previous: 0.2%

• 12:30 GMT: US Initial Jobless Claims - Expected: 350K, Previous: 360K

• 14:00 GMT: ECB President Lagarde Speaks

• All Day: USD Juneteenth Holiday

Technical Analysis:

EUR/USD:

• Pivot Point: 1.0725

• Support Levels: 1.0725, 1.0705, 1.0690

• Resistance Levels: 1.0760, 1.0780

• Indicators: The RSI is showing a bullish momentum above 50, while MACD remains positive.

Trade Idea:

• Long EUR/USD above 1.0725

• Entry Point: 1.0736

• Stop-Loss: 1.0720

• Take-Profit: 1.0780

• Rationale: Bullish momentum supported by technical indicators and recent market sentiment.

GBP/USD:

• Support Levels: 1.2640, 1.2600, 1.2580

• Resistance Levels: 1.2700, 1.2720, 1.2750

• Indicators: RSI below 50 suggests a bearish bias, while the 50-period SMA at 1.2750 acts as a resistance.

Trade Idea:

• Short GBP/USD near 1.2700

• Entry Point: 1.2700

• Stop-Loss: 1.2730

• Take-Profit: 1.2640

• Rationale: Persistent bearish bias and resistance at the 50-period SMA.

News Updates:

• Breaking News: Nvidia Corp. continues to surge, leading to a tech rally in Asia and bolstering the Nasdaq and S&P 500.

• Impact Analysis: The Fed’s potential rate cuts are fueling optimism in the tech sector, while mixed US economic data keeps broader market sentiment in check.

Trading Tips:

• Strategy: Consider using trailing stops to protect gains in the event of volatile market conditions.

Platform Updates:

• Maintenance: Our trading platform will undergo maintenance on Saturday from 02:00 to 04:00 GMT. Please plan your trades accordingly.

• New Features: We’ve introduced a new economic calendar tool on our platform. Check it out here.

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Happy Trading!

Best Regards, Forex368 Team

Disclaimer: Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors.

The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange, you should carefully consider your investment objectives, level of experience, and risk appetite.

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