EURUSD Rises After Filling the Gap, Attention on US ADP Employment Report【July 3, 2024】

Fundamental Analysis

• Today, the US market closes early, and the focus is on the US ADP Employment Report.
• The number of job openings in the US has unexpectedly increased. The key point is whether the number of employees is decreasing.
• USDJPY is trading in the mid-161 yen range, continuing its upward trend.

EURUSD technical analysis

Analyzing the daily chart of EURUSD, a large triangle is forming. From a broader perspective, the highs are lowering, and the lows are rising. It is about to reach the final part of the overall pattern and may swing either up or down depending on some trigger.

The event that might trigger this movement is the French election runoff. Attention is focused on whether the far-right party will gain a majority. The left and centrist parties are trying to unify their candidates to counter the far-right cabinet.
EURUSD is likely to show unstable movements until the election. The runoff election will be held on Sunday, July 7. At the beginning of next week, it is necessary to be cautious of a large gap opening.

Day trading strategy (1 hour)

Analyzing the 1-hour chart of EURUSD, it rose significantly at the beginning of the week, filled the gap, and then fell once. However, it has since risen again.

The greatest concern for the market is “future uncertainty.” If the far-right party becomes the ruling party, it is difficult to predict what policies will be implemented. This could be a bearish factor for EURUSD.

Until the runoff election this weekend, it will be difficult for the market to move significantly. The day trading strategy is to buy on dips. Buy at 1.0720 USD, sell at 1.0770 USD, and set a stop at 1.0708 USD.

Support/Resistance lines

The support and resistance lines to consider going forward are as follows:

1.077 USD .. Major resistance line

Market Sentiment

EURUSD Sell: 56% Buy: 44%

Featured Currency Pair of the Week (NZDJPY)

New Zealand Dollar Yen continues to rise. The upward trend remains intact. Today, there is the ADP Employment Report, and there is a possibility of a cautious stance prevailing, but the overall upward trend is expected to continue. Oceanic currency pairs tend to maintain trends for long periods, and this time, unless there is a significant event or fundamental change, it is expected to rise aiming for 100 yen. We want to continue to focus on buying on dips and trade with an upward outlook.

Today’s important economic indicators

*Trading advice in this article is not provided by Milton Markets, but by Shu Fujiyasu Jr., a certified technical analyst.