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Forex trading plan for July 2

  Kira Iukhtenko

The greenback strengthened after the strong data releases in the United States. According to ADP, June Non-farm payrolls came out at 237K, this is well above the forecasts. As a result, the market sentiment improved ahead of the official labor market data release on Thursday (NFP forecast: 231K).

EUR/USD extended the decline following the US releases.The Greek question remains unclear: technically, the country has entered the default zone yesterday, but negotiations continue.ECB head Mario Draghi will deliver a speech on Thursday.

Technically, EUR/USD holds above the major 1.1050 area. Market hopes for a Greek solution continue supporting the currency. Resistance is now seen at 1.1155. Fix below 1.1050 would open the way for a rapid decline to 1.0820.

GBP/USD slipped to a 2-month low around 1.5600 on Wednesday. A range of factors pressures the cable: Greek problem, weak UK manufacturing PMI and BOE Carney’s dovish comments. Watch the UK Construction PMI tomorrow.

Safe haven assets stay in demand, but USD/JPY surged to 123.00 on the US figures. We are trading in a sideways 122.00 – 124.50 range. There is an open gap left (bullish sign). However, any bad news from Greece will rapidly pull the pair down. In Japan there are no important releases left this week. 

CONTEST - PREDICT NFP

EUR
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