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FX.co ★ 24.06.2022: USD shapes traders’ sentiment. Outlook for EUR/USD and GBP/USD

24.06.2022: USD shapes traders’ sentiment. Outlook for EUR/USD and GBP/USD

The UK retail sales figures ahad a minor effect on the market. However, judging by the forecast, they should have led to a decline in the US dollar against the euro and the pound sterling.

Economists had expected that a decline in retail sales would have slackened to -4.1% from -4.9%. However, the drop slowed down just to -4.7%. Notably, the previous data was downwardly revised to -5.7%. Although the data is well below the forecast, the overall situation is improving. These factors offset each other, thus supporting the sideways movement.

The market situation is likely to remain the same since the macroeconomic calendar is absolutely empty. Only Congress’s decision on the gas tax holiday may somehow affect the market. If the US House of Representatives makes a decision today, the greenback may close this week with a rise. Investors appreciate a drop in taxes, even if it is a short-lived one.

On the trading chart, we see that the euro/dollar pair once again reduced the volume of short positions, reaching the support level of 1.0500. As a result, the downward movement slackened, causing a rebound.

Speculators are paying close attention to the price hovering within the range of 1.0500/1.0600, which reflects the accumulation process. (1.0500/1.0600) Breaking the range, the pair may accelerate, thus pointing to a future trend. Traders will receive a signal to enter the market, just after the price settles beyond either limit of the range on the daily chart.

Meanwhile, the pound/dollar pair has been trading within the range of 1.2150/1.2320 for one week already. This fluctuation is pointing to a slower correction from the psychological level of 1.2000. This, in turn, proves traders’ uncertainty.

The price is still hovering within the range. That is why a bounce from the upper limit of the channel is still possible. Under the current conditions, a breakout strategy should be considered as the main one.

Thus, we have the following trading recommendations:

Buy orders could be initiated if the price consolidates above 1.2325 on the four-hour chart. The target is located at 1.2400.

Traders may consider sell orders if the price settles below 1.2150 on the same time frame. In this case, the target is located at 1.2000.

*此处发布的市场分析旨在提高您的意识,但不提供交易指示
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