FX.co ★ Technical analysis and recommendations on EUR/USD and GBP/USD on July 6

EUR/USD

The bulls implemented an upward correction to the daily short-term trend (1.1890) after the slowdown, which was formed during the update of the low (1.1847). To recover the positions and strengthen the bullish sentiments, it will be important to break through the following borders – 1.1920-1.1936 (weekly Senkou Span A + Fibo Kijun) - 1.1975-85 (monthly Tenkan + lower border of the daily cloud + weekly Kijun) - 1.2035-51 (daily Kijun + weekly levels).

In case of completion of the current upward correction and return to the daily downward trend (1.1806), bearish interests will be directed to 1.1704 - 1.1695 (previous minimum extremum + monthly Fibo Kijun) and 1.1619 - 1.1684 (target at breakdown of the daily cloud).

The euro went beyond the key pivot points in the smaller time frames, so the advantage on H1 belongs to the bullish traders. The resistances of the classic pivot levels 1.1895 (R2) and 1.1909 (R3) are now strengthened by the levels in the bigger time frames and their breakdown will allow the bulls to further rise. However, strength is needed for the breakdown, because the encountered resistance levels will strive first to complete the growth and return opportunities to the bears. The supports of the classic pivot levels, which serve as downward intraday pivot points, are set at 1.1849 - 1.1835 - 1.1819 today. It is important for bearish traders to update the low extremum (1.1806) to continue the downward movement.

GBP/USD

The daily upward correction continues and the pair is going up. At the moment, the resistance levels of 1.3859-50 (daily Tenkan + weekly Kijun) are being tested. The next upward targets are still 1.3928 (daily Fibo Kijun) and the accumulation of levels of various timeframes in the area of 1.3958-90. The formation of a rebound from the resistances encountered will return the relevance to the supports. Today, the supports remain at 1.3754 (weekly Fibo Kijun) and 1.3731(minimum extreme).

A downward correction is developing in the smaller time frames. Bearish traders are testing the key supports, which are currently seen at 1.3821-40 (central pivot level + weekly long-term trend). A breakdown and a consolidation below will change the current balance of power. In this case, it will be possible to include the nearest supports of 1.3796 and 1.3774 (classic pivot levels) in the H1 chart to the important supports (1.3754 - 1.3731) in the higher periods.

***

Ichimoku Kinko Hyo (9.26.52) and Kijun-sen levels in the higher time frames, as well as classic Pivot Points and Moving Average (120) on the H1 chart, are used in the technical analysis of the trading instruments.