Trade Setups in USD-pairs Around June US NFPs
- EURUSD nears uptrend from mid-April and late-May lows.
- USDCAD breaks downtrend from March and June highs.
If we may take a step away for Greece for a few hours, then upcoming slate of US economic data may provide the necessary distraction. With the holiday-shortened week upon us thanks to the Friday observance of the July 4 holiday in the United States, the most important US economic report of the month has been pulled forward one day, adding another layer of complexity to an anxious market.
The US Dollar enters the day on strong footing, with the USDOLLAR Index moving to fresh weekly highs amid new post-Sunday open lows in AUDUSD and EURUSD.
It's worth mentioning that, in a vacuum, several of the trade setups being offered by the market right now are quite tantalizing: EURUSD may getting ready to break its uptrend from the mid-April and late-May lows; and USDJPY could be ending its consolidation that's been developing since June 9. However, the market is not in a vacuum; we must take into account the risks posed by the Greek referendum on July 5. As such, despite whatever reaction is achieved in EURUSD and USDJPY today, it may prove short-lived as the weekend carries immense gap risk for Sunday's opening prices.
See the above video for technical considerations in EURUSD, AUDUSD, USDCAD, and the USDOLLAR Index.
--- Written by Christopher Vecchio, Currency Strategist
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