- Broad US Dollar weakness was seen on Friday (2nd June) after the release of the May Employment report.
- This has allowed for a bullish extension of the EURUSD uptrend evident from mid-May.
- For GBPUSD, a positive consolidation theme has dominated from late May into early June, but the underlying, intermediate-term trend remains bullish into this week’s UK General Election.
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EURUSD – Upside threat
A strong push the upside from new support established at 1.1200 for another new recovery high on Friday after the US Employment report, reinforcing the firm midweek rebound from our support in the 1.1107/00 area, sustaining the bias back to the upside Monday.
Furthermore, the April push above 1.0906 signalled an intermediate-term bullish shift.
For Today:
l We see an upside bias for 1.1285; break here aims for a key target 1.1300 and through here up towards 1.1366.
l But below 1.1235 targets 1.1200 and opens risk down to 1.1162.
Intermediate-term Outlook – Upside Risks:
l We see a positive tone with the bullish threat to 1.1300.
l Above here targets 1.1366, 1.1428/47, may be as high as 1.1616.
What Changes This? Below 1.0568 signals a neutral tone, only shifting negative below 1.0493.
Daily EURUSD Chart
GBPUSD – Downside correction bias
A hesitant, albeit resilient consolidation tone for early June, maintaining upside bias from the late May rebound rally, pointing higher for Monday.
Furthermore, the mid-April push above 1.2775 produced a multi-month Triple/ Quadruple Bottom pattern, which signalled an intermediate-term bullish shift.
For Today:
l We see an upside bias for 1.2921 and 1.2947; break here aims at 1.3015, maybe up to the cycle high at 1.3048.
l But below 1.2828 opens risk down to 1.2774/68.
Intermediate-term Outlook – Upside Risks:
l We see a positive tone with the bullish threat to 1.3121.
l Above here targets the 1.3455/3534 area.
What Changes This? Below 1.2363 signals a neutral tone, only shifting negative below 1.2107.
4 Hour GBPUSD Chart
