FX.co ★ Analysis and forecast for EUR/USD on June 29, 2021

Yesterday's trading on the main currency pair of the Forex market was somewhat sluggish, without an emotional outburst. It is understandable. The market was swinging on the first trading day of the week, and it was extremely difficult to find significant drivers for the price movement yesterday.

If you look at today's economic calendar, Tuesday will undoubtedly be richer in macroeconomic reports and other events. At 10:00 London time, we will learn about the indices of business optimism, economic sentiment, and consumer confidence in the eurozone countries. At 13:30 (London time), the consumer price index in Germany will be published. However, the main events of today are likely to be the speech of the President of the European Central Bank (ECB), Christine Lagarde, which is scheduled for 14:40 (London time), as well as the US consumer confidence indicator, which will be released at 15:00 London time.

Daily

From a technical point of view, according to the results of yesterday's trading, there were no significant changes on the daily EUR/USD chart. Another candle of the Doji variety was provided at 1.1903, and the closing price was 1.1925. The fact that the pair is held above the significant level of 1.1900 for the market is a positive moment for the players to increase the exchange rate. We see a continuation of consolidation, after which the pair will either collapse to the area of 1.1800 or soar into the price area of 1.2000-1.2030. Once again, let me remind you that there will be no shortage of drivers this week, especially this one concerns the last trading day when data on the US labor market will be released. I believe that they will determine the final balance of power in the current trading week. Consolidation is an understandable and even necessary thing so that later the price movement begins or continues with a new force. The only disadvantage of this state of the market is the difficulties with opening positions. In other words, it is quite difficult and risky to trade the pair when it is consolidating. Let's see what the situation is at smaller time intervals.

H4

At the 4-hour timeframe, the consolidated nature of trading is even more visible. At the same time, at this point, there are weak attempts to overcome the nearest 50 simple moving average upwards. However, even if this mission is completed higher (at 1.1975), the pair is waiting for a horizontal resistance level, above which the black 89 exponential moving average rises, which passes at 1.1996. It is near the most important psychological level of 1.2000. Thus, the resistance zone and the area of potential sales can be defined as 1.1970-1.2000. As for the possibility of buying an asset, I recommend watching the price increase in case of its decline to the area of 1.1905-1.1855. If such a decline occurs and bullish candlestick analysis models begin to appear in the designated zone on this or hourly chart, this will be a signal for purchases. It is also more reliable and safe to open sales from the area of 1.1970-1.2000 after the formation of the corresponding signals. That's all for today.