02.06.202612:46 Forex Analysis & Reviews: Level and Target Adjustments for the U.S. Session – June 2

As the data showed, the Eurozone Consumer Price Index (CPI) rose to 3.2% in May, fully matching market expectations and having no impact on the euro. Although this indicator is an important measure of inflationary pressure, it had already been priced in by market participants. The absence of surprises suggests that the currency pair is likely to continue trading within its current range, which is being determined by a broader combination of fundamental and technical factors.

During the US session, traders will focus on the US Bureau of Labor Statistics' Job Openings and Labor Turnover Survey (JOLTS) data, as well as the RCM/TIPP Economic Optimism Index. While these macroeconomic indicators are not among the most important gauges of the US economy, they may influence market sentiment in the short term. The number of job openings reflects labor demand, while labor turnover data provides insight into workforce mobility and labor market participation. Positive dynamics in these indicators generally signal resilient economic growth and may support the US dollar.

The RCM/TIPP Economic Optimism Index measures consumer and business sentiment regarding current and future economic conditions. Higher-than-expected readings, although unlikely, could point to stronger consumer activity and increased investor confidence, which would also be supportive of the US currency.

If the data comes in strong, I will rely on the Momentum strategy. If the market shows little reaction to the releases, I will continue using the Mean Reversion strategy.

Momentum Strategy (Breakout Trading) for the Second Half of the Day

For EUR/USD

• A breakout above 1.1660 may lead to a rise toward 1.1680 and 1.1699;
• A breakout below 1.1645 may lead to a decline toward 1.1625 and 1.1585.

For GBP/USD

• A breakout above 1.3480 may lead to a rise toward 1.3510 and 1.3535;
• A breakout below 1.3445 may lead to a decline toward 1.3410 and 1.3370.

For USD/JPY

• A breakout above 159.80 may lead to a rise toward 159.99 and 160.12;
• A breakout below 159.60 may trigger a decline toward 159.40 and 159.20.

Mean Reversion Strategy for the Second Half of the Day

For EUR/USD

• I will look for short positions after a failed breakout above 1.1657 and a return below this level;
• I will look for long positions after a failed breakout below 1.1627 and a return to this level.

For GBP/USD

• I will look for short positions after a failed breakout above 1.3485 and a return below this level;
• I will look for long positions after a failed breakout below 1.3452 and a return to this level.

For AUD/USD

• I will look for short positions after a failed breakout above 0.7199 and a return below this level;
• I will look for long positions after a failed breakout below 0.7170 and a return to this level.

For USD/CAD

• I will look for short positions after a failed breakout above 1.3858 and a return below this level;
• I will look for long positions after a failed breakout below 1.3835 and a return to this level.