-EURUSD recently broke above the bearish channel and moved up, trading close to the resistance of $1.10782

-XAUUSD chart has a Doji candle formation indicating the market has neutral bulls and bears. An important point to note is the price is still in the bearish phase.

USA (USD): Initial Jobless Claims

Initial Jobless Claims measures the number of individuals who filed for unemployment insurance for the first time during the past week. This is the earliest U.S. economic data, but the market impact varies from week to week.  Last week’s claims rose to 239K, better than the forecast of 266K.

The report is due Thursday, 6 July 12:30 GMT

EURUSD Technical Analysis:

EURUSD was in a pull phase, with price trading inside the bearish channel. For a long, the price was trading above the 200MA and below the 50MA showing short-term due range movement.

There are multiple candle rejections around the psychological level of $1.10782, which the price touched thrice but could not break above it when the bulls were active and in control. The price of $1.10782 now is acting as a resistance.

When the multiple candle rejection pattern was formed, the RSI showed medium bearish RSI divergence signifying that bearish pressure was due, and in the next trading session, the sellers were in control until now when RSI showed the oversold condition, and the market came up. The price has recently broken the bearish channel and the 50MA.

The price was very close to the resistance of $1.10782, which it tested twice in the previous trading sessions. The price is on the verge of crossing the 50MA. Currently, the price is trading between $1.10782 and $1.06650. Traders must wait for the price to break any of these levels as on the 4hr time frame, the price looks to be trading in a consolidation state.

Pivot Points: EURUSD

USA (USD): Nonfarm payrolls

Nonfarm Payrolls measures the change in the number of people employed during the previous month, excluding the farming industry. Job creation is the foremost indicator of consumer spending, which accounts for the majority of economic activity.  Nonfarm payrolls increased to 339K, higher than the forecast of 180K.

The report is due Friday, 7 July 12:30 GMT

XAUUSD Technical Analysis:

XAUUSD is in a downtrend and trading inside the bearish channel. The price is above the 200MA and below the 50MA, signaling it may trade in the short-range range. XAUUSD formed the bottom swing low at $1805.18, after which the bulls entered the market, pulling the price by almost 13.47%, forming a new swing high at $2081.46. This swing high is also acting as a resistance to the current price.

The price does not seem to have many bulls; instead, bearish is in charge, forming lower highs and lower lows. The RSI line is at 39.28, indicating an oversold condition. An indication of market sentiment being neutral is seen by a Doji candle formation recently. Traders must pay close attention and wait for the price to break above the previous high at $1943.37.

Pivot Points: XAUUSD

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