Technical Analysis of ETH/USD for June 3, 2020:

Crypto Industry News:

Cryptocurrency exchanges and payment processors are now legally recognized as cash service companies in Canada.

On June 1, amendments were made to the Canadian Crime Income Act and the Terrorist Financing Act, which were adopted in June 2019 to remove holes in the existing legal framework.

Canadian crypto companies must now report all transactions in excess of $ 10,000 ($ 7,403) and register and comply with the Canadian Center for Transaction Analysis and Reporting (FINTRAC).

The new regulations will mainly affect cash companies, such as Bitcoin ATM operators, as most Bitcoin related companies have already introduced KYC funds because they were obliged to do so by their banking partners.

Technical Market Outlook:

The ETH/USD breakout above the 261% Fibonacci extension target located at the level of $247.36 was short-lived. The bears has aggressively pushed the prices lower towards the level of $225.85, so now the price is back in the main channel zone. The next target for bears is seen at the level of $217.65 and $215.58. The decreasing momentum supports the short-term bearish outlook for Ethereum.

Weekly Pivot Points:

WR3 - $307.85

WR2 - $277.87

WR1 - $257.91

Weekly Pivot - $226.70

WS1 - $208.30

WS2 - $176.78

WS3 - $157.13

Trading Recommendations:

The larger time frame trend on Ethereum remains down and as long as the level of $288 is not violated, all rallies will be treated as a counter-trend corrective moves. This is why the short positions are now more preferred. The next key technical support is seen at the level of $174.82.

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Cheap money and rising oil prices determine the markets' dynamics; Overview of NZD and AUD

Markets are still not paying attention to the growth of civil unrest in the United States, nor to the deterioration of US-China relations. The first stage trade agreement signed on January 15 is on the verge of collapse, but the markets have already noticed that Trump's statement on Hong Kong did not entail any action, and therefore rightly judged that the main purpose of such statements is to influence their own electorate. Trump wants to win the election in November, and it is not in his interests to take steps that could strike the stock market. From this, a simple conclusion is that cheap money continues to manage the markets, and their offer will be supported by other central banks. As a result, growth may turn out to be more stable than calculations and fundamental data suggest.

The demand for risk is also supported by rising oil prices. The reduction in capital expenditures, the decline in US production and the efforts of OPEC + with the resumption of economic activity amid a reduction in coronavirus restrictions contribute to the formation of an oil shortage in the second half of the year. This morning, the API reported a decline in oil reserves of 0.483 million barrels, which came as a surprise to the markets. As a result, the July WTI futures added as of 5.30 Universal time more than 2.5%, Brent exceeded $ 40 per barrel, which will further support the demand for commodity assets.

NZD/USD

In a financial stability report published last week, RBNZ noted that despite the stability of the New Zealand financial system, the range of internal and external threats is wide and the onset of economic decline is the strongest in 160 years. Despite the fact that economic activity in May began to grow relative to the previously reached lows, the country expects a decline in household incomes, unemployment, bankruptcy and a decline in investment.

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As for speculative expectations regarding the New Zealan dollar, they improved slightly, although not so fast, and did not keep pace with the growth of NZD/USD on the spot. According to the CFTC report, the net short position of NZD has slightly declined, the growth looks reasonable, but not so much as to count on a confident break through of the resistance level of 0.6450 without correction.

The estimated price has turned up, which supports growth, but the current impulse is based more on emotions rather than fundamental data.

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Testing the level of 0.6450 seems inevitable, but there is a low probability that it will become successful. Growth does not have fundamental confirmation, and therefore, the peak of NZD/USD will most likely begin to form in the resistance zone, unless of course there are new positive impulses that are considered by the market.

AUD/USD

The Australian dollar is still the leader in growth, completely ignoring either the civil unrest in the United States, the growing tension between the US and China, or the still weak economic prospects for the 2nd quarter.

Yesterday, the RBA left the rate unchanged at 0.25%, and no surprises were found in the report on asset purchases or liquidity transactions. The board has promised that this "adaptive approach will continue until it is needed," while the cash rate will be held until "progress towards full employment is made and the RBA is confident that inflation will be sustainable within the target range."

The RBA supported the growth of the Australian dollar, emphasizing that the economy is in better condition than the central bank feared, but the prospects are extremely uncertain, but because it is completely logical, the RBA will maintain the confidence of households and enterprises. Hence, the expected energetic tone of the accompanying statement.

The estimated price has been turned upwards already as 2 weeks, but behind the impulse. The picture is similar to that observed for the New Zealand dollar.

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The AUD/USD pair has come close to a year high of 0.7023, and is likely to test its strength. Taking into account market sentiment, the test may be successful, but a strong gap between the spot price and the calculated one increases the chances of a corrective pullback.

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Indicator analysis. Daily review on GBP / USD for June 3, 2020

Trend analysis (Fig. 1).

Today, the upward trend may continue from the level of 1.2552 (closing of yesterday's candle) with the target at the resistance line 1.2626 (presented in a red bold line). If this line is reached, a downward pullback is possible with the target of 1.2547 - a 14.6% pullback level (presented in a red dashed line).

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Fig. 1 (daily chart).

Comprehensive analysis:

- Indicator analysis - up;

- Fibonacci levels - up;

- Volumes - up;

- Candlestick analysis - down;

- Trend analysis - up;

- Bollinger Lines - up;

- Weekly schedule - up.

General conclusion:

Today, the price may continue to move upwards with the target at the resistance line 1.2626 (presented in a red bold line). If this line is reached, a downward pullback is possible with the target of 1.2547 - a 14.6% retracement level (presented in a red dashed line).

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Indicator analysis. Daily review on EUR / USD for June 3, 2020

Trend analysis (Fig. 1).

Today, the upward trend may continue from the level of 1.1172 (closing of yesterday's candle) with the target of 1.1235 located at the upper border of the Bollinger line indicator (presented in a purple dashed line). In case of breaking this level upwards, the next target is 1.1296 - a 76.4% retracement level (presented in a blue dashed line). Upon reaching this level, the price may begin to move down.

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Fig. 1 (daily chart).

Comprehensive analysis:

- Indicator analysis - up;

- Fibonacci levels - up;

- Volumes - up;

- Candlestick analysis - down;

- Trend analysis - up;

- Bollinger Lines - up;

- Weekly schedule - up.

General conclusion:

Today, the price will continue to move upward with the target of 1.1235 located at the upper border of the Bollinger line indicator (presented in a purple dashed line).

Another possible scenario is a downward trend after reaching the level of 1.1235 (purple dashed line) with the target of 1.1129 - a 14.6% pullback level (presented in a red dashed line).

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Technical Analysis of BTC/USD for June 3, 2020:

Crypto Industry News:

The world's leading mining equipment manufacturer Bitmain has launched a new ASIC Antminer T19 chip for Bitcoin mining.

According to the announcement of June 1, the new Antminer T19 has a SHA256 hash rate of 84 terahash / second with a 3% error margin and energy efficiency of 37.5 joules / terahash with a 5% error margin.

The new ASIC will be sold on the manufacturer's official website from today, and shipments will start between June 21-30.

The chips used in the new device are the same as in Antminers S19 and S19 Pro, but also uses the new APW12 power supply and updated software. These changes reportedly allow faster startup to optimize work.

The T19 announcement follows recent community reports that Bitmain's recently launched ASIC Antminer S17 + mining systems were flawed.

Technical Market Outlook:

The BTC/USD pair has dropped to the level of $9,158 after a failed breakout above $10k. The sell-off was sudden, dynamic and aggressive, so many traders were caught off-guard. The price has bounced from the trend line support (blue and brown trend line color on the chart) and is currently hovering around the level of $9,462 after the bounce. The momentum is now weak and negative, so any clear violation below the level of $9,000 will accelerate the drop towards the next technical support located at the level of $8,565.

Weekly Pivot Points:

WR3 - $11,128

WR2 - $10,392

WR1 - $9,960

Weekly Pivot - $9,277

WS1 - $8,866

WS2 - $8,158

WS3 - $7,756

Trading Recommendations:

The larger time frame trend remains down and as long as the level of $10,791 is not violated, all rallies will be treated as a counter-trend corrective moves. This is why the short positions are now more preferred until the level of $10,791 is clearly violated. The key mid-term technical support is located at the level of $7,897.

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Hot forecast and trading recommendation for EUR/USD on June 3, 2020

The only thing that worries all the media right now is the protests in the United States.This is the only thing that determines the mood of investors at the moment. To determine the trend for yesterday, there was enough information that four St. Louis police officers were hospitalized with bullet wounds. That is, now not only does the police use firearms, but also the demonstrators. So violence goes to a new level. The trend towards a weakening dollar was reinforced by reports that during the protests, a total of at least eleven people were killed. In general, the situation in the United States is very difficult, and does not contribute to investment. So big business is clearly looking for a quieter place.

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It is clear that as long as mass protests and clashes with the police continue, including with the use of firearms, no macroeconomic data will worry anyone. They will begin to think about them later. Nevertheless, today's macroeconomic data for Europe will be quite mixed. On the one hand, the summary data on business activity indices should confirm a slight increase in European business sentiment. Thus, the index of business activity in the service sector should grow from 12.0 to 28.7. Given yesterday's growth in the index of business activity in the manufacturing sector, this should lead to an increase in the composite business activity index from 13.6 to 30.5. This is not surprising, since the gradual removal of restrictive measures introduced due to the coronavirus epidemic is perceived by businesses as an exceptionally positive factor. After all, a working business is better than a closed one. Even if consumer demand has noticeably decreased, it is still much better than the complete absence of any activity. However, the unemployment rate could rise from 7.4% to 8.1%. Consequently, the growth potential of consumer activity is clearly very, very small. Another negative factor will be data on producer prices, the decline rate of which should accelerate from -2.8% to -3.2%. This already indicates an ever-increasing threat of Europe slipping into full deflation. Moreover, a meeting of the Board of the European Central Bank will take place tomorrow, and in anticipation of such an event, the release of such weak data on prices is rather an extremely alarming call. Bottom line, we have statistics offsetting each other, so that the market will continue to monitor protests in the United States.

Unemployment Rate (Europe):

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In turn, US statistics will also be purely multidirectional in nature. The restrictions previously imposed due to the coronavirus epidemic are also gradually being removed in the United States, and business is clearly looking forward with optimism. Exactly for the same reasons as in Europe. They are generally universal for the whole world. So the index of business activity in the service sector should grow from 26.7 to 36.9. Along with the recent increase in the index of business activity in the manufacturing sector, this could lead to an increase in the composite index of business activity from 27.0 to 36.4. But this is for the positive news, and now it's time to move on to the negative. So, ADP data can show a decrease in employment by another 9,600,000. The volume of factory orders should be reduced by another 16.0%. So all this news will overlap. It can be seen that if we rely solely on macroeconomic statistics, then, in theory, the market should just stand still. It turns out that the horrors that are happening on the streets of American cities help market participants determine their preferences and moods. We can say that they save the market from stagnation.

Employment Change from ADP (United States):

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From the point of view of technical analysis, you can see a constant upward interest that has been kept in the market for 2.5 weeks. So the bullish mood of market participants not only changed the clock component, but also stormed an important range level of 1.1180/1.1200, locally focusing above it. It is worth considering that having a movement has recently grown into a momentum, and its slope signals a growing overbought.

In terms of a general review of the trading chart, the daily period, you can see significant changes in the short term, but when analyzing global ticks, the downward trend remains unchanged.

We can assume that with the current external background, weakening the US dollar in the direction of 1.1300 is not ruled out, but it should be noted that with each subsequent upward movement, the quote overheats more and more, this means that a technical correction will occur at the slightest weakening of the external background.

From the point of view of a comprehensive indicator analysis, we see that the indicators of technical instruments unanimously signal a purchase due to stable upward momentum.

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Technical Analysis of EUR/USD for June 3, 2020:

Technical Market Outlook:

After the short period of consolidation, the EUR/USD pair has broken through the supply zone located between the levels of 1.1148 - 1.1190 and made a new local high at the level of 1.1213 (at the time of writing the article). The bulls are still in control of the market and the next target for them is seen at the level of 1.1237. Please notice, the market conditions are now overbought and despite the positive and strong momentum the price might start a corrective pull-back towards the nearest technical support located at the level of 1.1050.

Weekly Pivot Points:

WR3 - 1.1499

WR2 - 1.1307

WR1 - 1.1241

Weekly Pivot - 1.1045

WS1 - 1.0959

WS2 - 1.0772

WS3 - 1.0680

Trading Recommendations:

On the EUR/USD pair the main long term trend is down, but the local up trend continues. The key long-term technical support is seen at the level of 1.0336 and the key long-term technical resistance is seen at the level of 1.1540. Only if one of this levels is clearly violated, the main trend might reverse (1.1540) or accelerate (1.0336).

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Technical Analysis of GBP/USD for June 3, 2020:

Technical Market Outlook:

The GBP/USD pair has made a new local high at the level of 1.2609, just above the technical resistance located at the level of 1.2580. The market has broken out of the ascending channel and is getting away from it, so the momentum is still increasing and odds for a local up trend continuation after the range breakout are high. The nearest support is seen at the level of 1.2485 and the next target for bulls is seen at the level of 1.2645. The last swing low and technical support is seen at the level of 1.2072, but there is still a long way to test this level of support.

Weekly Pivot Points:

WR3 - 1.2667

WR2 - 1.2540

WR1 - 1.2455

Weekly Pivot - 1.2311

WS1 - 1.2222

WS2 - 1.2062

WS3 - 1.2001

Trading Recommendations:

On the GBP/USD pair the main trend is down, but the local up trend continues. The key long-term technical support has been recently violated (1.1983) and the new one is seen at the level of 1.1404. The key long-term technical resistance is seen at the level of 1.3518. Only if one of these levels is clearly violated, the main trend might reverse (1.3518) or accelerate (1.1404). The market might have done a Double Top pattern at the level of 1.2645, so the price might move lower in the longer-term.

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Elliott wave analysis of GBP/JPY for June 3, 2020

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GBP/JPY is about to test solid resistance at 135.10 before climbing higher towards 141.06. The clear break out of the base-channel also confirms that wave three is developing. We are currently looking for the peak of red wave iii. This could be seen here at 137.09 but it can be very difficult for the third wave to touch the peak. As red wave ii/ was a sideways complex correction, we should expect a simple zig-zag correction to the 135.00 - 135.30 support-zone before moving higher again.

R3: 138.58

R2: 137.52

R1: 136.95

Pivot: 136.25

S1: 135.85

S2: 135.50

S3: 135.00

Trading recommendation:

We are long GBP from 131.95 and we will raise our stop to 133.50

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Elliott wave analysis of EUR/JPY for June 3, 2020

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EUR/JPY has gained bullish momentum. We were looking for the peak of black wave iii/, but the speed of the rally since the low of black wave ii/ at 115.32 indicates that a much more bullish count is needed as we clearly are in black wave iii/, but the sub-waves in red still dominates the count and we are just about to complete red wave iii. It might move to 121.80 for a correction to the support-zone between 120.40 - 120.65 before the next push higher 122.70 to complete red wave v/ and black wave iii/.

R3: 122.70

R2: 122.45

R1: 121.80

Pivot: 121.255

S1: 120.85

S2: 120.65

S3: 120.40

Trading recommendation:

We are long 25% of the orginal position from 115.65 and we will move our stop higher to 119.30 and we will take profit on the final 25% at 122.50.

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EUR/JPY trying to test the round number 123.00 June 03, 2020

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EUR/JPY is trying to reach the round number 123.00. However, it may meet resistance from the upper channel pitchfork. As long as the pair does not drop and close bellow the 120.75 level, it is likely to touch the upper line o the pitchfork and reach the 123.00 level.

Overall the EUR/JPY bias is Bullish.

(Disclaimer)

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Cable is trying to touch Pitchfork Channel Middle Line on June 03, 2020

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As we see on the 4-hour chart, the Cable now is trying to reach the Pitchfork Channel Middle Line, although the area of 1.2621 to 1.2650 will be the target for this pair too. Please pay attention to the fact that the currency pair failed to touch the Middle line of the Pitchfork Channel. This will make the change of GBP/USD direction, especially on condition that the pair will break out and closes below 1.2529.

The overall bias of GBP/USD now is bullish.

(Disclaimer)

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Overview of the GBP/USD pair. June 3. Boris Johnson is doing everything to make the pound start to fall again in price, and

4-hour timeframe

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Technical details:

Higher linear regression channel: direction - sideways.

Lower linear regression channel: direction - upward.

Moving average (20; smoothed) - upward.

CCI: 104.8194

The British pound continued to break all records of strengthening against the US currency on the second trading day of the week. Since the beginning of the trading week, the pair has added more than 250 points, despite the fact that we have not seen macroeconomic statistics from the UK for more than a week, and the fundamental background from the Foggy Albion is mostly negative. However, at this time, America is frankly "outperforming" Britain in terms of the amount of negativity that the country has faced. Therefore, even without any signs of a correction, the pound continues to be bought by traders and the US dollar continues to be sold.

In an article on EUR/USD, we described in detail the situation with mass protests, pogroms, and rallies in the United States. We also discussed in detail why everything that is happening in the country is almost guaranteed to put an end to all of Trump's hopes for re-election in November 2020. In addition, there are also official studies conducted by well-known companies like YouGov, which has repeatedly correctly predicted the outcome of elections. According to the latest research from this company, the democratic presidential candidate Joseph Biden is now ahead of Donald Trump in the election ratings by 10%. Data from other research companies and resources suggest that Biden can already count on 272 electoral votes at the moment, while 270 votes will be enough to win the election. In addition, Trump is again criticized by almost half of the country. He is criticized by state governors, doctors, Democrats, and ordinary citizens who in just a few months have stopped living in a prosperous country and "moved" to a country with 30 million unemployed people, who just have time for rallies and protests that covered 45 states out of 50. Trump is not used to being criticized, but previously the US president was always ready to take certain actions both in relation to external opponents and in relation to internal enemies. Now, after a week of rallies and protests in the US, Trump is only threatening. Threatens to resort to the forces of the army, threatens to "harshly" suppress rallies, threatens the family of the deceased George Floyd. And does not perform any actions. Therefore, instead of returning to normal life, the United States is now sliding into an even stronger crisis, not only financial, but also social, and a crisis of power.

In the UK, the situation is better than in the US for the first time in a long time. At least there are no riots in the Foggy Albion right now. There are only financial problems, and a completely uncertain future. The country's government, represented by Donald Trump's "younger brother" Boris Johnson, is also mercilessly criticized and experts say that the lack of a deal with the European Union will finish off the British economy, which is already suffering after a 4-year process of "divorce" from the European Union, as well as the "coronavirus" pandemic, from which Britain suffered the most in Europe. On Monday, a new round of negotiations between the groups of Michel Barnier and David Frost began, and almost immediately it became known that the European Union sees no reason to offer London the same favorable terms of the deal that were offered to other partners. The position of Brussels remains as simple as possible. It took 7-8 years to reach agreements with other countries. London wants to achieve an even better free trade agreement without making any concessions and within just 9-10 months, 3 of which have already passed. Thus, it is highly likely that the current round of negotiations will also end in failure. And in the second half of June, Boris Johnson will personally go to Brussels, who intends to hold talks personally with Ursula von der Leyen. However, it is unclear what exactly Johnson is going to offer to the European Union and the European Commission, and why he will not offer it now? And if he is not going to make any concessions, then why is he going to Brussels at all? In general, in the coming months, the British Prime Minister risks getting another defeat in his liability. Recall that the entire list of his victories is limited so far to his personal victories and the Conservative Party in the elections (agree, this is hardly a government victory for the country), as well as the fact that Brexit will still be brought to an end this year. This is what the "majority" of British people, "as much as" 52%, wanted. Thus, 48% of the almost one hundred percent will be dissatisfied. In the past year, Scotland has continued to push for a new independence referendum and wants to leave the United Kingdom to remain in the EU. Boris Johnson is criticized for the lack of trade deals with the United States and the Alliance. His political ratings have started to fall while the political ratings of Keir Starmer, the new Labor leader, are rising and, according to some reports, he has already overtaken Johnson. This means that a new political crisis may soon occur in the UK. The current government has not coped with the "coronavirus" pandemic, can not agree on the terms of a "soft divorce" with the EU, and ordinary Britons will pay for all this. Their health, their lives, their money.

Thus, for the time being, the pound is getting more expensive and, if the situation in the United States does not improve, it may continue to grow, but its prospects, based on the fundamental background from the UK itself, remain extremely vague. Well, at the same time, China decided to suspend the purchase of some farm products from the United States. Recall that according to the latest trade agreement signed in January this year, China must annually purchase agricultural products in the United States for certain amounts, which are estimated in the tens of billions of dollars. Media reports that the reason for this decision was the regular threats of the White House to impose sanctions against China in connection with the situation around Hong Kong. According to insider information, China is also ready to completely abandon the "first phase" agreement of January 15, if Washington continues to put pressure on China, impose sanctions and duties. We believe that, therefore, the hard-negotiated trade deal at the beginning of this year is in danger of being derailed. This means that the world is on the verge of a new bad weather in the form of another or more powerful and destructive confrontation between Beijing and Washington, which will again hit the world economy.

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The average volatility of the GBP/USD pair has started to decline again and is currently 124 points. For the pound/dollar pair, this indicator is "high". On Wednesday, June 3, thus, we expect movement within the channel, limited by the levels of 1.2406 and 1.2654. A downward turn of the Heiken Ashi indicator will indicate a downward correction.

Nearest support levels:

S1 – 1.2512

S2 – 1.2451

S3 – 1.2390

Nearest resistance levels:

R1 – 1.2573

R2 – 1.2634

R3 – 1.2695

Trading recommendations:

The GBP/USD pair continues to move up quite strongly on the 4-hour timeframe. Thus, today it is recommended to continue trading the pound/dollar pair for an increase with the goals of 1.2634 and 1.2654 and keep the longs open until the Heiken Ashi indicator turns down. It is recommended to sell the pound/dollar pair when the bears manage to return to the area below the moving average, with the first targets of 1.2329 and 1.2268.

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Overview of the EUR/USD pair. June 3. The collapse of Donald Trump's "magnificent America". In just a few months, Trump has

4-hour timeframe

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Technical details:

Higher linear regression channel: direction - downward.

Lower linear regression channel: direction - upward.

Moving average (20; smoothed) - upward.

CCI: 104.8194

The EUR/USD currency pair continued to grow on the second trading day of the week and now we can say for sure that the reason for the growth of the European currency this week is the events in the United States. Recall that over the past week, mass protests, demonstrations, and rallies began in the United States after a police officer in the state of Minnesota strangled a black man during his arrest. The scene of the arrest was filmed on a nearby street camera, which clearly shows how a white police officer strangles a black man with his knee for seven minutes, who later died of asphyxia. After this incident, actions against racism and in support of black people began to take place all over the world. While in European countries, people express support through social networks and various ways of expressing their respect for all races on the planet Earth. In America, rallies and protests reached their climax this weekend and continue to this day in more than 40 cities of the country. This is not just about rallies. We are talking about pogroms, as crowds of Americans destroy everything in their path and do not pay attention to the police, who often support the protesters themselves. In this regard, many cities and states have already declared a curfew, which is also ignored by protesters. And this is another headache for Donald Trump, who seems to have already said goodbye to his dream of remaining US president for a second term (and for a third and fourth). The main irony of the situation is that the US president himself is hardly to blame for the rallies, he is hardly to blame for the "coronavirus" epidemic that has swept the country. However, the American population will identify these events with the figure of Donald Trump and blame him for what is happening. This is partly true. After all, the government is to blame for what is happening in the country. In the first three years of his presidential term, Donald Trump almost every day boasted of his services to the country, as well as the achievements of his government, not forgetting to throw mud at the Democrats and everyone who came under his hand. At that time, America was growing, GDP was growing, unemployment was falling, and the labor market was gaining strength. And Trump associated this progress with his name. The US leader will definitely remember 2020 forever, because absolutely everything that he put to himself was leveled, and the country was mired in rallies, protests and was struck by the "coronavirus". On the international stage, a new trade war with China is brewing, which threatens to turn into a "cold war" that will last for many years. If six months ago or a year ago, the American economy could afford such a luxury as a new trade standoff with Beijing, now, after the COVID-2019 epidemic, it can not afford such a thing. Thus, if Trump still imposes new sanctions and duties against China because of the pandemic and Hong Kong, it threatens to even more severe collapse of the American GDP, while the Chinese economy, according to experts, will still show a small growth in 2020. According to most political analysts and experts, Donald Trump will not take such a step.

Thus, the chances of re-election of Donald Trump are currently approaching zero. Of course, according to official data and polls, Joseph Biden is ahead of the current president by about 10%. However, we believe that the Americans will not forgive the odious leader of the United States for exactly where he led his "great country", as he has repeatedly called the United States. As a result, at this time, protests and rallies have even reached the White House. And if the protestants have already appeared near the presidential administration, then there are claims not only to the police, but also to the authorities of the United States. Police used tear gas and rubber bullets to disperse the rally near the White House, but this did not stop rallies and pogroms across the country. It is noted that in major cities, such as New York, crowds of people rob and smash stores. Now just remember that all these crowds of people come together during an epidemic. How many new cases of coronavirus will there be after all the protests and pogroms are over? And what will happen next in the country? A new quarantine that is almost guaranteed to bury the American economy? A new wave of pandemics that will kill 100,000 more people?

So far, Donald Trump is trying to stop rallies and lawlessness with his favorite weapon – threats. He said that the governors of all states should use any number of national guard soldiers to establish full control over what is happening on the streets of the United States. "If the city or state refuses to take the measures necessary to protect people, their homes and property, I will solve the problem by sending the military to them. I will mobilize all federal resources: both civilian and military," Trump said. However, current US law does not allow the president to personally use the armed forces inside the country. This requires congressional authorization. However, Trump immediately said that according to the law of 1807, which has never been used in the United States, he has the right to use the army to put down a riot. All the unrest inside the country, the US president called terror. A riot is brewing even in social networks. Last week, Trump clashed with the Twitter network, through which he loves to "communicate" with Americans. This week, Facebook employees are going to hold a strike against the decision of CEO Mark Zuckerberg, who does not want the network to react to controversial posts by Donald Trump. Employees believe that the Facebook platform should not lead to incitement and misinformation of the population, regardless of who is the author of the messages. And finally, Trump himself once again poured mud on those who can not show results and quell the unrest. In this case, we are talking about all the governors of US states. "You have to dominate or you will look like jerks. You should arrest and judge people," the leader of the nation said. Donald Trump called on the authorities and police "not to act too carefully when suppressing riots", and also said that "the whole world laughed at Minneapolis", where protesters burned several police stations.

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The average volatility of the euro/dollar currency pair as of June 3 is 81 points. Thus, the value of the indicator is still characterized as "average". Today, we expect the pair to move between the levels of 1.1097 and 1.1259. The reversal of the Heiken Ashi indicator downwards signals a round of downward correction, which is expected for several days in a row.

Nearest support levels:

S1 – 1.1108

S2 – 1.1047

S3 – 1.0986

Nearest resistance levels:

R1 – 1.1169

R2 – 1.1230

R3 – 1.1292

Trading recommendations:

The EUR/USD pair continues its strong upward movement. Thus, after overcoming the psychological level of 1.1000, long positions remain relevant with the goals of 1.1230 and 1.1259, which are recommended to hold until the Heiken Ashi indicator turns down. It is recommended to return to selling the pair not before the price is re-anchored below the moving average line with the first goals of 1.1047 and 1.0986.

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

GBP/USD: plan for the European session on June 3 (analysis of yesterday's deals). Pound buyers believe in a bright future.

To open long positions on GBP/USD, you need:

Despite another futile round of trade negotiations between the UK and the EU, traders continue to buy the British pound amid a weak US dollar, which remains under pressure due to riots in the United States. However, it is worth paying attention that the COT reports for the past week remain on the side of the pound sellers, so you should be extremely careful with further purchases at highs. The COT report states that short non-profit positions increased from 54,799 to 61,449 during the week, while long non-profit positions also increased from 35,810 to 39,192. As a result, the non-profit net position became even more negative and turned out to be at the level of –22,257, against –18,989, which so far indicates that the medium-term bearish trend has remained in GBP/USD. As for the short-term technical picture of the pound, the bulls are focused on a breakthrough of resistance at 1.2609, consolidating on it can result in the pair's growth in the area of highs 1.2647 and 1.2686, where I recommend taking profits. Also, do not forget to retaining 1.2565 support, since forming a false breakout on it will be a signal to open long positions while expecting the bullish trend to continue. If the pair falls below this level, it is best to wait until the low of 1.2504 is updated, where the moving averages go, or buy GBP/USD immediately to rebound from the larger level of 1.2439, where buyers will try to form a new lower boundary of the ascending channel.

To open short positions on GBP/USD, you need:

Sellers are still quite cautious and are not in a hurry to return to the market even at current highs, since it is not clear what the current situation with the unrest in the US will lead to. The initial task of the bears is to maintain the resistance of 1.2609, since a false breakout there will be the first signal to sell the pound, which can lead to a breakthrough and consolidation below the support of 1.2565, which is very important for the current short-term outlook. Movement below the 1.2565 level will force many speculative buyers to close long positions, and this will lead to selling GBP/USD to the low of 1.2504 and 1.2439, where I recommend taking profits. However, updating these supports will only be considered as a correctional movement within the upward trend of May 18. In case the pound grows further, it is best to return to short positions only after updating resistance at 1.2647, or even higher - from a high of 1.2686 while aiming for a downward movement of 30-35 points to close the day.

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Signals of indicators:

Moving averages

Trade is conducted above 30 and 50 moving averages, and the market is on the side of pound buyers.

Note: The period and prices of moving averages are considered by the author on the hourly chart H1 and differs from the general definition of the classic daily moving averages on the daily chart D1.

Bollinger bands

In case the pound falls, support will be provided by the lower border of the indicator at 1.2515. A break of the upper border of the indicator in the area of 1.2590 will cause the pound to sharply grow.

Description of indicators

  • Moving average (moving average determines the current trend by smoothing out volatility and noise). Period 50. The graph is marked in yellow.
  • Moving average (moving average determines the current trend by smoothing out volatility and noise). Period 30. The graph is marked in green.
  • MACD indicator (Moving Average Convergence / Divergence - Moving Average Convergence / Divergence) Fast EMA period 12. Slow EMA period 26. SMA period 9
  • Bollinger Bands (Bollinger Bands). Period 20
  • Non-profit traders are speculators, such as individual traders, hedge funds and large institutions that use the futures market for speculative purposes and meet certain requirements.
  • Long nonprofit positions represent the total long open position of nonprofit traders.
  • Short nonprofit positions represent the total short open position of nonprofit traders.
  • The total non-profit net position is the difference between short and long positions of non-profit traders.
The material has been provided by InstaForex Company - www.instaforex.com

AUDUSD holding above trendline support and looks for further upside!

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Trading Recommendation

Entry: 0.68984

Reason for Entry: Ascending trendline support, 23.6% Fibonacci retracement, moving average

Take Profit : 0.70823

Reason for Take Profit: -27.2% Fibonacci retracement

Stop Loss: 0.68015

Reason for Stop loss: 50% Fibonacci retracement

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

Forecast for EUR/USD on June 3, 2020

EUR/USD

Risk appetites continue to grow despite protests and riots in the US: S&P 500 gained 0.82% yesterday, gold fell 0.69%, yield on 5-year US government bonds rose from 0.31% to 0, 32% The euro grew by 35 points, gaining a foothold on the daily chart over the trend line of the price channel. Target of 1.1250/65 is open.

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The price is growing in a stable trend on the four-hour chart, but the Marlin oscillator has formed a divergence. With an increase in the price of another 15 points, the divergence can be reorganized into a regular pullback of the indicator (indicator discharge) with the resumption of growth. We are waiting for the price in the specified target range, where it is possible to form a more stable reversal pattern.

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

Forecast for AUD/USD on June 3, 2020

AUD/USD

Optimistic data on the Australian economy came out this morning, on Wednesday. As we expected, GDP for the first quarter turned out to be better than forecast: -0.3% against the expected -0.4%. In addition, issued permits for new construction in April showed a decline of only 1.8% compared to expectations of -10.8%. As a result, the Australian dollar grew by 90 points in the Asian session today, breaking the upper border of the price channel (0.6937), which is why the channel disappears from our reviews until a new unambiguously readable reversal appears. The target levels are record extremes. The nearest at 0.6975 was reached this morning, the next target is the level of 0.7080. Behind it is 0.7185.

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The price rises very quickly with a moderate growth of the Marlin oscillator in its own narrow channel on the four-hour chart. The output of the indicator signal line from its own channel down will become a signal for a correction of the price. This can happen when the price drops below 0.6900.

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It is hardly possible to calculate the depth of the correction since there are many local levels in front of it, therefore, it is not advised to open sales, respectively. You can possibly retain purchases while aiming for 0.7080. It is acceptable to open short-term purchases with a price transition above 0.6975.

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

Forecast for USD/JPY on June 3, 2020

USD/JPY

Following a two-week sideways movement, the USD/JPY pair finally pulled up yesterday due to the continuing rise in risk appetites: the S&P 500 added 0.82% yesterday, gold fell 0.69%, and 5-year US government bond yields were up from 0.31% to 0.32%. The growth of the USD/JPY pair reached 110 points, the first bullish target of 108.30 was overcome. The second target of 109.50 is open, where now we are waiting for the price. With its overcoming, growth is possible to 110.83 (November 2017 low). The Marlin oscillator is in the zone of positive values.

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The price slightly retreated after strong growth on the four-hour chart. Target level of 108.30 now acts as support. After completing the local correction, we expect the currency pair to continue growing.

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

Comprehensive analysis of movement options for Gold, Palladium, Platinum, and Silver (H4) on June 3, 2020

Minuette operational scale (H4)

The main precious metals Gold, Palladium, Platinum, and Silver - overview of movement options from June 3, 2020.

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Spot Gold

The development of the Spot Gold movement from June 3, 2020 will be determined by the development and direction of the breakdown of the boundaries of the 1/2 Median Line channel (1729.00-1739.00-1749.00) of the Minuette operational scale fork - details of working out these levels are shown on the animated chart.

A breakout of the lower border of the channel 1/2 Median Line of the Minuette operational scale fork - support level 1729.00 - development option for the Spot Gold downward movement towards the goals:

  • initial line SSL Minuette (1714.00);
  • LTL Minuette control line (1700.00);
  • local minimum 1692.88.
  • with the prospect of reaching the boundaries of the 1/2 Median Line channel (1680.00-1650.00-1622.00) of the Minuette operational scale fork.

In case of breaking the upper border of the channel 1/2 Median Line Minuette - resistance level of 1749.00 - the development of this tool will continue in the zone of equilibrium (1749.00-1762.00-1775.00) of the Minuette operational scale fork of the achievement of the line of control UTL (1780.00) of the Minuette operational scale fork and end line FSL Minuette (1818.00).

Details of the Spot Gold movement from June 3, 2020 can be seen on the animated chart.

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#PAF (Palladium) Current Month

From June 03, 2020, the #PAF (Palladium) movement will be determined by working out and the direction of the breakdown of the boundaries of the equilibrium zone (1985.00-2035.00-1085.00) of the Minuette operational scale fork - see the animated chart for details of the movement in this equilibrium zone.

The breakdown of the top border ILS38.2 equilibrium zone of the Minuette operational scale fork- resistance level 2085.00 - the upward movement of #PAF can be continued to the goals:

  • local maximum 2170.00.
  • SSL Minuette starting line (2240.00);
  • lower limit of the channel 1/2 Median Line (2295.00) of the Minuette operational scale fork.

If the support level of 1985.00 breaks at the lower border of ISL61.8 of the balance zone of the Minuette operational scale forks, the downward movement of the Palladium Current Month can be continued towards the goals:

  • LTL control line (1940.00) of the Minuette operational scale forks;
  • ultimate line FSL Minuette (1840.00);
  • with the prospect of reaching the warning line LWL38.2 Minuette (1775.00) and the local minimum 1732.00.

The markup of #PAF (Palladium) motion options from June 3, 2020 is shown on the animated chart.

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#PLF (Platinum) Current Month

The development of the #PLF (Platinum) movement from June 3, 2020 will be determined by the development and direction of the breakdown of the range:

  • resistance level 895.0 at the lower border of the channel 1/2 Median Line of the Minuette operational scale fork;
  • support level 875.0 on the initial line of the SSL of the Minuette operational scale fork.

In the event of a breakdown of the initial SSL line of the Minuette operational scale fork - support level 875.0 - there may be a development of a downward movement #PLF to the LTL Minuette control line (862.0) and the boundaries of the equilibrium zone (850.0-822.0-792.0) balance zones of the Minuette operational scale fork with the possibility of updating the local minimum 757.5.

With the breakdown of the resistance level of 895.0, the development of the Platinum Current Month movement will continue in the channel 1/2 Median Line (895.0-911.0-929.0) of the Minuette operational scale fork with the prospect of reaching the borders of the equilibrium zone (942.5-966.0-988.0) of the Minuette operational scale fork.

Details of the #PLF (Platinum) movement options from June 3, 2020 are shown in the animated chart.

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Spot Silver

The development of the Spot Silver movement from May 27, 2020 will also be determined by the development and direction of the breakdown of the range:

  • resistance level 18.600 - warning line UWL61.8 of the Minuette operational scale fork;
  • support level 18.200 - UTL control line of the Minuette operational scale fork.

The breakdown of the UTL control line of the Minuette operational scale fork - support level of 18.200 - will determine the development of the downward movement Silver Spot can be directed to the goals:

  • SSL Minuette starting line (17.750);
  • channel 1/2 Median Line Minuette (17.500-17.250-17.000);
  • with the prospect of reaching the equilibrium zone (16.700-16.350-16.000) of the Minuette operational scale fork.

If the resistance level 18.600 is broken on the warning line UWL61.8 of the Minuette operational scale fork, the upward movement of Spot Silver will be directed to the warning lines UWL100.0 Minuette (19.150) and UWL161.8 Minuette (20.000).

Details of the Spot Silver movement options from June 3, 2020 are shown in the animated chart.

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The review is compiled without taking into account the news background, the opening of trading sessions of the main financial centers, and is not a guide to action (placing "sell" or "buy" orders).

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

Hot forecast and trading signals for the GBP/USD pair for June 3. COT report. Buyers are in a rage, but must protect 1.2529

GBP/USD 1H

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The pound/dollar pair continued its upward movement on Tuesday, June 2, and also overcame the resistance level of 1.2529. Now this resistance level may be a kind of reference level for further purchases of the British currency. The fact is that, unlike the euro currency, which has a very narrow upward channel, the GBP/USD pair has only an upward trend line, which now lies at a distance of about 230 points. Thus, even if the instrument falls by 230 points tomorrow, formally the upward trend will continue. This combination of circumstances is very inconvenient for opening new positions for the purchase. Especially in conditions when the British pound can return to a fall at any moment. Thus, we recommend using the 1.2529 level to set the Stop Loss under it. If the pair goes below it, then the new buy-position can be considered after the reverse consolidation above it.

GBP/USD 15M

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Both linear regression channels continue to be directed upward on the 15-minute timeframe, therefore, there are no signs of completing the upward trend here, just as there are no signs of starting a correctional movement.

COT Report

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Despite the fact that in total among all major market participants, the demand for the pound sterling did not change during the reporting week (a total of 8600 contracts for buying and selling were opened), professional traders mainly bought the pound sterling - +5205 contracts, and from contracts for on the contrary, they got rid of the sale at -686 transactions. Thus, the mood of traders remains upward, and in principle, the situation has not changed at the end of last week. The GBP/USD pair continues to grow at the beginning of the new week, which means that the demand for the pound does not decrease. The new COT report may show even greater strengthening of the position of large buyers.

The fundamental background for the British pound remains negative despite the fact that this currency continues to go up in tandem with the dollar. Macroeconomic reports in the first two trading days of the week were not published either in the US or in the UK. And at the same time in both countries there are already serious financial problems, as well as new ones are brewing. However, the US dollar is now cheaper because of mass protests, the wave of which swept the United States, and not because of economic reports or the possible start of a new trade war with China. Recall that during the previous trade conflict with Beijing, most of the time the US currency continued to rise in price against the euro and against the pound. At least, fears for an escalation of the conflict did not push traders to sell the dollar. Thus, even now, this reason seems insufficient to independently cause the US currency to fall. All macroeconomic publications of today are already listed in the forecast for EUR/USD. In the UK, only the index of business activity in the services sector is planned on June 3, which is likely to be ignored by traders with a 99% probability. However, market participants are now interested in completely different things. For example, the outcome of the fourth round of negotiations between the groups of Michel Barnier and David Frost, as well as the results of Boris Johnson's trip to Brussels.

There are two main scenarios as of June 3:

1) The initiative for the pound/dollar pair remains in the hands of buyers and, since the next resistance level of 1.2529 was overcome yesterday, traders are advised to stay in purchases with the target of 1.2664. A short Stop Loss can be set below the 1.2529 level and, if it works, it is recommended that new purchases be made only after re-consolidation above the 1.2529 level. Take Profit will be about 100 points.

2) Sellers continue to remain in the shadow and will be ready to return to the market only below the ascending trend line. Of course, short positions can be considered up to this point, but at the moment there are no prerequisites for this. We consider the minimum necessary condition for sellers to overcome the area of 1.2403-1.2423. Then it will be possible to sell the pair while aiming for the trend line (1.2310). In this case, Take Profit will be about 90 points.

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

Hot forecast and trading signals for the EUR/USD pair for June 3. COT report. Buyers continue to enjoy the favorable situation.

EUR/USD 1H

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The EUR/USD pair calmed down on Monday, but already on Tuesday resumed a strong upward movement on the hourly timeframe, while remaining inside the upward channel, which is very narrow, which indicates an almost recoilless upward movement. In recent days, buyers did not completely take the initiative out of their hands, sellers did not have a single chance to consolidate under the ascending channel. Thus, today, buyers can continue to trade with the objectives of the two nearest resistance levels of 1.1205 and 1.1312. We also recall that the upward trend is supported by two upward trend lines, which previously repeatedly supported the traders to increase and did not let the bears down. Bears can enter the battle not before closing the quotes of the euro/dollar pair below the rising channel.

EUR/USD 15M

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We see the same picture on the 15-minute timeframe. Two linear regression channels, both still directed upward and clearly signal an upward trend. Thus, at the moment, there is no signal at the disposal of traders regarding the end of the upward trend.

COT Report

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The latest COT report showed that professional traders unexpectedly started buying the European currency during the reporting week. Suddenly - because, from our point of view, the fundamental background was not in favor of the euro. However, during the current week it became expectedly in favor of the euro due to mass rallies and protests in the US. Large traders found reason to open new 7524 purchase contracts last week. Only 3817 sales contracts were opened for the reporting week, if we take into account the most important group of traders - professional players who work in the market with the goal of making profit due to exchange rate differences. This information is already enough to understand that the mood of large traders for the reporting week has changed to bullish. The beginning of the new week also remains with the buyers, so in the new COT report we can see an even greater increase in purchase contracts among professional traders.

The overall fundamental background for the pair remains neutral, given news of an economic nature only. However, market participants are now very worried about the future of the US economy, which is on the verge of a new trade war with China, which will have a negative impact on it, and the whole country is covered by rallies, protests and outright riots that do not allow us to expect economic recovery in the near future. But they allow us to expect the second wave of the epidemic of the coronavirus. Doctors warned before the riots and rebellions that Donald Trump prematurely weakened the quarantine and a new outbreak could happen in the country. Now the likelihood of a new outbreak has increased many times over. No macroeconomic statistics were published yesterday, but today there are several reports that deserve attention. Firstly, it is data on unemployment and on the number of applications for unemployment benefits in Germany for May and June. These reports will make it possible to conclude whether the worst is left behind. It is expected that the unemployment rate will rise to 6.2%, which is not so much, and the number of new unemployed will be 200,000. Secondly, the unemployment rate will also be released in the European Union, which threatens to jump to 8.2% in April. Thirdly, the ADP report on the level of employment in the private sector for May will become known (forecast -9 million workers). Fifth, business activity indices for Markit and ISM services in the United States will be published. We believe that absolutely all of these reports will have practically no effect on the course of trading. Just because traders are absolutely ready for the numbers that appear in the forecasts.

Based on the foregoing, we have two trading ideas for June 3:

1) It is possible for quotes to grow further with the goals of resistance levels for the 4-hour chart of 1.1205 and 1.1312. However, the bulls simply need to stay within the rising channel for this. Stop Loss levels can be placed below the channel and gradually transferred to the top. Potential Take Profit in this case will be from 30 to 130 points.

2) The second option - bearish - involves consolidating the EUR/USD pair under the upward channel, which will allow sellers to join the game and start trading lower with targets at 1.1074 (Kijun-sen) - 1.0990 (upward trend ) - 1,0931 (support level). Overcoming each of the barriers will keep sales open. Potential Take Profit range from 50 to 200 points.

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

EUR/USD and GBP/USD. Most Americans consider Trump a racist (opinion poll), which further affects his political ratings.

4-hour timeframe

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Average volatility over the past five days: 85p (average).

The EUR/USD currency pair continued to trade with an increase on Tuesday, June 2 as if nothing had happened. Traders have been waiting for a downward correction for several days in a row, but it still does not start. Just a few days ago, the euro/dollar was firmly "sitting" inside the side channel, and there was no fundamental reason for a new upward trend to begin. Market participants cheerfully ignored all macroeconomic reports. Now, even a macroeconomic background is not required. In principle, we cannot even say that the US dollar is falling in value in pairs with the euro and the pound solely due to riots and riots in the United States. Most likely, traders are getting rid of the US currency now for a combination of reasons. And among this aggregate, one can distinguish the impending threat of a new trade war with China, the threat of a cold war with China, the strongest collapse of the US economy, the high threat of the second wave of the epidemic (the likelihood of which has also increased over the past week thanks to all the same rallies and protests of the American people, during which, of course, no rules of social distance are respected), and, frankly, the political crisis. We talked about Donald Trump, his activities, his manner of conducting international and internal affairs a thousand times. In short, we believe that Donald Trump is an excellent businessman who managed to apply his business qualities in the first three years, which benefited America and its GDP, but a bad leader and a bad politician, because he managed to lose everything due to the lack of necessary qualities his merits for the next few months of his reign. Trump constantly underestimated China, underestimated the Democrats, believing that it is the smartest and most powerful. In practice, it turned out that it was intentionally or accidentally, but it was Beijing that dealt such a blow to America that it is now unknown when the "great country" will recover from it. And Trump himself with a high degree of probability will not be the next president of the country.

The events of recent weeks have affected Trump's political ratings not only because the country's president is always responsible for what is happening in this country. According to opinion polls, most Americans think Trump is a racist (52% according to YouGov). 45% of respondents said that, in their opinion, interracial relations in America have worsened in recent years. Agree, it is very disadvantageous when the majority of the population considers the president a racist in the midst of a racist scandal. As for the liking of potential voters, Trump lost 4% in popularity over the past week, and Joe Biden scored 4% and, thus, now the Democrat is leading by a margin of between 8% and 10%.

Meanwhile, Hong Kong Prime Minister Carrie Lam accused the US government of "double standards." At the end of last year, when riots took place in Hong Kong due to the adoption of several laws that contradict the autonomy of the district and the principle of "one state - two systems of government," Washington publicly condemned the actions of the Chinese police, which too harshly pacified the rebels. The White House even made a decision at the legislative level to restrict sales of certain categories of goods that were used by the Chinese police to suppress the riots. Now, when mass protests are taking place in the United States themselves, the American police do not limit themselves at all in the means of suppressing rebellions. "America is very concerned about its own national security, but they look at our national security through tinted glasses," said Lam. "We see how the authorities in the US" cope "with the riots and compare it with their position that they took when almost the same riots occurred in Hong Kong last year." Lam also recalled Trump's words about the "powerful blow", clearly hinting that America had run into what it was fighting for.

4-hour timeframe

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Average volatility over the past five days: 141p (high).

The GBP/USD currency pair also continued its upward movement on June 2, which has clearly intensified in recent days. Thus, during the day the pound/dollar pair overcame the second resistance level for this week at 1.2529 and did not show a single sign of starting a correctional movement. The pair's volatility has significantly grown in recent days, and the reasons for strengthening the British currency are now similar to the reasons for the euro's growth. And they obviously do not lie in the European Union or Great Britain. From the UK, we have already forgotten when the last time came positive news or macroeconomic data. Which, in principle, is not surprising in times of global crisis and epidemic. However, even when the economies of all countries of the world are contracting, and the epidemic is affecting the inhabitants of these countries, for some reason, Britain is in first place in the number of COVID-19 related deaths in Europe, as well as the one with the most number of cases of diseases. A second wave of a pandemic is possible in Britain. Thus, even in a situation where all countries of the world are experiencing serious problems, Britain is even more serious. And if it were not for the unexpected and completely discouraging story in the United States, the pound would now fall back to the March 23 lows. However, instead, the British currency is growing and already approaching the highs of April 14 and April 30, which almost coincide at a price level of 1.2647. Actually, only about 100 points remain until this level is reached. We believe that it is around this level that the fate of the pound will be decided in the coming weeks. If traders show their strength and overcome this level, then the upward movement may continue with renewed vigor, but its duration will depend on the current circumstances on how quickly it will be possible to suppress rebellions and riots in America. In case the pair's quotes rebound from the 1.2647 level, bears can return to the market and recall that the economic situation in Britain (the most important and significant for traders) is no better than in the US, which means there are no particularly good reasons for long-term purchases of the British no pound. Well, if a new chunk of information about the failure of the next round of Brussels-London negotiations arrives in June, it can also significantly reduce the attractiveness of the pound in the eyes of traders.

Recommendations for EUR/USD:

For long positions:

The EUR/USD pair continues its upward movement on the 4-hour timeframe. Thus, the current targets for open buy orders are now levels 1.1205 and 1.1312. You are advised to manually close longs when the price rebounds from any target. The MACD indicator may now give false signals about the beginning of a correction, since the upward movement is practically recoilless.

For short positions:

Orders for sale can be opened no earlier than consolidating the price below the critical line with the first target support level of 1.0931. However, in this case, trading for a fall is recommended in small lots.

Recommendations for GBP/USD:

For long positions:

The pound/dollar is also continuing its upward movement. Thus, it is also advised to stay in purchases with targets of 1.2620 and 1.2664 until a rebound from any target occurs or the MACD indicator turns down when the price drops in parallel.

For short positions:

It is recommended that sales of the GBP/USD pair be considered with a target of 1.2299 and Senkou Span B line not before consolidating quotes under the Kijun-sen line, which is not expected in the near future.

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