EURUSD- Weekly outlook- 3rd June 2022

Introduction

Reports from most indications show that the US dollar is stronger against other major currencies. The forex brokers will be monitoring the non-farm payroll report that is expected during the trading week. The report will give the market participants possible direction of the pair in the coming months as the price may breakout below the key support zone or bounce off from the zone.

EURO and US News

European German Retail Sales m/m 

The retail sales in Euro will exclude the automobiles and gas stations because they tend to be volatile and it will distort the sales report. However, it measures the changes in the overall value of inflation-adjusted sales at the retail level. If the report is greater than the forecast it is good for the Euro but lower data is not suitable for the currency.

The forecast is -0.5% while the previous is -0.1%

THE NFP m/m

The NFP is one of the strong fundamental news that the online brokers, investors, retail traders, and government agencies are looking forward to because job creation is a leading indicator of the overall health of the economic activities and consumer behavior with spending will reflect on the lifestyle of consumers.

The report of NFP will exclude the farming industry but it will consider the employees engaged during the previous month. If the outcome is greater than the forecast it is very good for the US dollar but a lower figure is not suitable for the currency.

The previous report was 428K while the forecast is 325K.

BTCUSD Technical Analysis

Monthly Chart  Objective: Down Trend Buildups 

Monthly Resistance   1.23730, 1.16500.

Monthly Support levels 1.03522, 1.04676.

The online brokers who took a short position from 01 June 2021 made about 18.12% when the price dropped to the support level of 1.03522 making the US dollar stronger compared to the other currencies. If the price of the EURUSD pair should breakout below the support level of 01 May 2022 (1.03522), the support zone of 02 October 2000 (0.82311) will be exposed giving the short position trades and online brokers advantages to riding the trend.

On the other hand, the Euro currency may get stronger for an upward rally from the current zone of support if the Bulls can hold the zones. The zone marks the COVID-19 pandemic era that weakens the US currency and the global economy. It is a sensitive zone for the online brokers in the financial marke

Weekly Chart down trend

Weekly Resistance levels 1.07980, 1.15000, 1.07661

Weekly Support levels 1.15230, 1.03890

The sentiment on the forex market is up with mixed reactions as the EU disagreed and agreed to ban seaborne exports of Russian oil into the European block because of the continuous aggression of the Russian military on the people of Ukraine.

The EURUSD pair had two weeks bullish run before the price slowed down around the previous support zone now acting as resistance (1.07661) of 17 April 2022 which is rejecting the bullish run. If the price fails to build bullish momentum for the buyers to run, we may see the selling pressure continue from the zone and it will bring the price down to the support level of 1.03357. However, if buyers can close above the resistance zone of 1.076661 the EURUSD will be aiming for 1.11400 zones.

Daily Chart  Projections: Downtrend 

Daily Resistance Levels 1.14950, 1.1800

Daily Support levels 1.03520, 1.06300, 

The EURUSD pair did a bullish swing long and broke out above the 1.06300 zone and it might be an indication that the pair wants to reverse the trend from a downtrend into an uptrend on the daily time frame if the price does not close below the support level of 1.03520 as the correction phase begins.

However, the primary trend remains bearish until the reversal of the trend is confirmed in the daily time frame. A close below the support level will mean the trend continues for the sellers while the online brokers who are planning to go long will lookout for a double bottom pattern around the support which could lead to a reversal of EURUSD for a bullish trend.

EURUSD Conclusion and Projection

The new month will come with its drama in the forex market as the US Bureau of labor will be releasing its data on the NFP this week Friday. Online brokers, retail traders, institutions, and investors will be on the lookout as the market reacts to the hefty impact of the news. 

The EURUSD pair sits in a psychological zone on the monthly time frame, a breakout below the zone will take the price to another support zone it has left for some years. The pair is still bearish on the daily chart and the continuation of the trend may continue from the resistance of the channel.

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