Forecast for EUR/USD on July 2, 2020

EUR/USD

The euro repeated the scenario of the previous day on Wednesday - it reached the range of target levels 1.1195-1.1265 with small punctures in both directions. The difference was that it ended yesterday with an increase of 18 points against a slight decline on Tuesday. This difference has somewhat strengthened the euro's growing potential. The Marlin oscillator has yet to show signs of growth on the daily chart .

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Consolidating the price above 1.1265 may entail further growth to the level of 1.1385. A more reliable price move below 1.1195 will open a bearish target at 1.1103. This market behavior is probably associated with insufficiently strong data on the US economy. In the private sector, 2,369,000 jobs were created in June against the expected 2,850,000. The US Manufacturing ISM report on business (ISM Manufacturing PMI) grew to 52.6 in June from the May reading of 43.1 points, but by the end of the day, the Dow Jones stock index fell by - 0.30%, while the S&P 500 grew 0.50%.

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The price consolidated above the MACD indicator line and the Marlin oscillator went into the positive trend zone on the four-hour chart - prerequisites are created for a price breakthrough upwards.

Data on employment and industrial orders will be released earlier since the US will be celebrating a holiday on Friday. We are expecting 3,037,000 new jobs in the non-agricultural sector in June (Non-Farm Employment Change) after 2,509,000 in May, the unemployment rate is expected to decrease from 13.3% to 12.4%. The volume of production orders (Factory Orders) for May is projected at 8.6% against the April collapse of -13.0%. If the forecasts come true, the euro can be returned under the indicator lines, because growth has not yet been formed, there are only technical prerequisites for this. If the price drops below 1.1195, we expect a further decline to 1.1103.

The material has been provided by InstaForex Company - www.instaforex.com