Daily Review: June 4

Vic He
Vic He

Super Week for the Dollar Sees Initial Decline; Focus Shifts to Upcoming Data Performance!

Daily Market Review

Market Recap

On Monday, the U.S. May ISM Manufacturing PMI fell to 48.7, declining for the second consecutive month. PMI data indicates the U.S. economy is gradually slowing down, leading to a significant drop in the dollar index, which fell to a three-week low, closing at 104.08. Meanwhile, non-U.S. currencies and precious metals, including gold and silver, saw gains. The three major U.S. stock indices showed mixed results, with Berkshire Hathaway briefly plunging 99.97%, capturing market attention.


Today's Focus

Dollar Index: Trading reached the 104 level, and caution is advised before shorting if it doesn't break this level effectively. Watch for the reaction at the 103.88 low; if it doesn't break effectively, the short-term will rise again. A direct break will lead to a significant downward adjustment. If this area holds, consider small-scale long positions upon the appearance of a reversal candle.


EUR/USD: Short-term prices broke above the 1.089 region high. Currently, watch the resistance around the 1.094 region. If it doesn’t break effectively, look for short-term retracements during the day. The short-term pivot is around the 1.089 region, and watch for a reversal after a retracement test.


GBP/USD: After testing 1.27 again, the price has risen and broken through the 1.28 threshold, continuing its short-term upward trend. The upper resistance is at the previous high around the 1.289 region; look for long trading opportunities upon a breakout and pullback. The support level lies at 1.275.


USD/JPY: A short-term double-top pattern has emerged. Focus on a breakout and pullback, with short-term resistance unchanged at 157. For short-term operations, look for a reversal upon testing, with support at 154. For larger positions, wait for a pullback before continuing to go long.


AUD/USD: The price has hit the 0.7 threshold short-term and remains within the 0.6558-0.6715 range. Currently, prices are at the upper edge of the range, and short positions can be taken as long as 0.6715 holds. Look for support at the previous pivot around 0.664.


USD/CAD: The price has repeatedly tested the 1.36 threshold without breaking it. Short-term trading can continue to rely on this area for long positions. The strong support is at 1.355; if it does not effectively break, focus on the potential for another rebound. For larger positions, await the Bank of Canada's interest rate decision tomorrow.


Crude Oil: The price broke downward yesterday, with a short-term pivot area in the 76-77 region. If the price doesn’t break above this region, the downward trend remains unchanged. The left-side structural support is around 73. Watch for a failed rebound to continue the downward trend.


Gold: The price continues to run below resistance in the short term. Before breaking effectively above 2370, maintain a short position approach. If the short-term 2350 area holds, continue short operations. Large resistance remains at 2370, and significant support is unchanged at 2250.


S&P Index: After reaching the 5300 level yesterday, the price showed a V-shaped reversal. Short-term trading is rapidly fluctuating, but the overall range-bound trend continues. Until the price breaks the 5320-5350 resistance and the 52000 support, continue a high-sell, low-buy approach within the range.


Bitcoin: The price rose from the 67600 support area yesterday to test the 70500 level, continuing the short-term fluctuation. Currently, the price is near the 70500-72000 resistance region. Look for short-term shorting opportunities if the price doesn't break through.


Risk Warning and Disclaimer

The market carries risks, and investment should be cautious. This article does not constitute personal investment advice and has not taken into account individual users' specific investment goals, financial situations, or needs. Users should consider whether any opinions, viewpoints, or conclusions in this article are suitable for their particular circumstances. Investing based on this is at one's own responsibility.

The End


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