FX.co ★ Trading plan for EUR/USD and GBP/USD on July 4

Dollar rose in price as risk appetite fell due to weak manufacturing activity in the eurozone. However, quotes recovered this morning because a similar indicator from the UK came out better than the preliminary estimate.

Trading activity will be low in the afternoon because American institutional investors, who control most of the capital circulating in the global financial market, will not be present due to the Independence Day celebrations in the US. This will leave markets at a standstill.

EUR/USD halted movement along 1.0900 due to the absence of main players in the market. But a correction to 1.1000 could still happen.

A similar scenario could be seen in GBP/USD, but the stagnation happened around the resistance level of 1.2700. Low amplitude fluctuation may continue until tomorrow, depending on whether the quote can stay above the resistance level, or if the situation leads to a gradual increase in the volume of short positions.