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03.06.201908:47 Forex Analysis & Reviews: Forecast for EUR/USD and GBP/USD on June 3. Trump unleashes trade war with Mexico

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EUR/USD – 4H.

Exchange Rates 03.06.2019 analysis

As seen on the 4-hour chart, the EUR/USD pair performed a reversal in favor of the European currency, quite a bit before reaching the previous low. As a result, the euro rose to the correction level of 100.0% (1.1177). The rebound of quotes from this level of Fibo will allow traders to expect a reversal in favor of the US currency and the resumption of the fall in the direction of the correction level of 127.2% (1.1102). However, this option will also require some fundamental support. The fact is that Donald Trump has recently become more active on the world stage. The President of America introduces a completely new weapon to combat foreign economic and geopolitical problems – trade sanctions. Earlier, Trump imposed trade sanctions against China again, citing the fact that China does not comply with the conditions that the parties agreed earlier. At the end of last week, import duties were imposed from Mexico, as there is a serious problem of illegal immigrants on the border with this country. Trump decided that it was time to shift the responsibility for this problem to the Mexican government, which caused an angry reaction of the government of the country, which annually imports goods from the United States for more than 250 billion dollars. So far, the euro is growing, but traders are already beginning to fear Trump's actions, which could have a negative impact on the US dollar in the coming months.

The Fibo grid was built on extremums from March 7, 2019, and March 20, 2019.

Forecast for EUR/USD and trading recommendations:

The EUR/USD pair returned to the correction level of 100.0%. Thus, I recommend selling the euro with the target of 1.1102, a protective order above the Fibonacci level of 100.0%, if it is rebounding from the level of 1.1177. I recommend buying the pair after closing above the level of 100.0% from the correction level of 1.1241 and a stop loss order under 1.1177.

GBP/USD – 4H.

Exchange Rates 03.06.2019 analysis

The GBP/USD pair could hardly make a return to the corrective level of 76.4% (1.2661). But the pound still shows very weak signs of life. Traders are still unwilling to buy the pound as Brexit's prospects remain hazy. But another "loud" statement was made by Donald Trump. He said that if he were in the place of the UK, he would "not pay and left." According to Trump, which was easy enough to predict, if the party does not get a "fair deal", you need to get up and leave. Adding fuel to the fire, Trump only makes traders more nervous about Brexit, as it remains completely incomprehensible not only the fate of the country's exit from the European Union but also the fate of the current Parliament. The pound sterling may again fall out of favor with traders in the coming days. The rebound of the pound from the Fibo level of 76.4% will allow expecting a reversal in favor of the US currency and a resumption of the fall in the direction of the correction level of 100.0% (1.2437). Closing the pair's rate above the Fibo level of 76.4% will work in favor of continuing growth in the direction of the corrective level of 61.8% (1.2796).

The Fibo grid is built on the extremes of January 3, 2019, and March 13, 2019.

GBP/USD – 1H.

Exchange Rates 03.06.2019 analysis

As seen on the hourly chart, the pound/dollar pair performed a rebound from the correction level of 200.0% (1.2554) and a reversal in favor of the English currency. As a result, the pair came close to the Fibo level of 161.8% (1.2673). The retreat of quotations from this level will allow us to count on a reversal in favor of the US dollar and the resumption of the fall in the direction of the correction level of 200.0%. Today, the divergence is not observed in any indicator. The fundamental component remains entirely on the side of the pound sterling.

The Fibo grid is built on the extremes of April 25, 2019, and May 3, 2019.

Forecast for GBP/USD and trading recommendations:

The GBP/USD pair rebounded from the level of 1.2554. I recommend selling the pair with the target of 1.2554 if the rebound from the Fibo level of 161.8% with the stop loss level above the level of 1.2673 is executed. I recommend buying the pair at the close above the Fibo level of 161.8% (hourly chart) with a target of 1.2782 and a protective order under the level of 1.2673.

Przedstawiono Samir Klishi,
przez eksperta analitycznego
z grupy firm InsaForex © 2007-2024
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