Forex Analysis & Reviews: 02.06.2025 - U.S. Dollar: Weekly Preview

Live Chat

InstaForex Loprais Team - Official participant of the Dakar rally

This section features the most important information about trading with InstaForex. We provide both analysis from leading experts for experienced traders and articles on trading conditions for beginners. Our services will help increase your profit potential.

Become Trader

Account Opening

See also

Trading Conditions

Forex Analytics

Charts

This section is designed for those who are just starting their trading journey. InstaForex educational and analytical materials will meet your training needs. Our experts' recommendations will make your first steps to trading success simple and clear.

Start as Beginner

How to start trading

Useful information

Training and recordings

InstaForex innovative services are an essential element of productive investment. We strive to provide our clients with advanced technical capabilities and make their trading routine comfortable as we are recognized as the best broker in this regard.

Become Investor

PAMM System

ForexCopy System

Passive investments

OYS account

Partnership with InstaForex is beneficial and top-tier. Join our affiliate programs and enjoy bonuses, partner rewards, and the possibility to travel with the team of the world-renowned brand.

Become Partner

Main Page

Partner Area

Advantages for Affiliates

Registration

This section contains the most lucrative offers from InstaForex. Receive bonuses when topping up an account, compete with other traders, and get real prizes even when trading in a demo account.

All Promo Campaigns

Bonuses

Contests

Events

Holidays with InstaForex are not only pleasant but also useful. We offer a one-stop portal, numerous forums, and corporate blogs, where traders can exchange experiences and become successfully integrated into the Forex community.

Full details

Forums

We are in social networks

Forex humour

Forex Portal

InstaForex is an international brand created in 2007. The company provides services for online FX trading and is recognized as one of the world's leading brokers. We have won the trust of more than 7,000,000 retail traders, who have already appreciated our reliability and focus on innovations.

Learn More

History

Why Choose Us

InstaSport

Regulation

Company News

Awards

InstaForex Stars

InstaForex Offline

Headquarters

Key documents

Social Responsibility

InstaForex - Official partner of Dragon Racing

02.06.2025 12:52 AM

U.S. Dollar: Weekly Preview

The economic news background in the U.S. will be very strong. It's the beginning of a new month, so reports on business activity, the labor market, job openings, and unemployment will be released. If we exclude the inflation report, the above indicators are the most important for market participants. However, in recent months, monetary policy from the Federal Reserve or the unemployment rate has not been the market's primary focus. Instead, the market has been dominated by the new trade architecture that Donald Trump is trying to implement in the global economy. Therefore, there is every reason to believe that trade war news will continue to dominate next week.

Everyone should be waiting for the upcoming news, but why wait when it's already here? Over the weekend, Donald Trump announced increased tariffs on imported steel and aluminum to protect American factories and manufacturers. This news alone could sharply reduce demand for the U.S. dollar on Monday.

In addition, the ISM Manufacturing PMI will be released on Monday, followed by the JOLTS job openings report on Tuesday, the ISM Services PMI and ADP employment report on Wednesday, and the Nonfarm Payrolls and unemployment rate on Friday.

Furthermore, I am confident we will receive new updates on the global trade war. Trump may announce signing initial trade agreements, which would slightly ease market tensions. Alternatively, it could be new tariffs. By the way, I wouldn't exclude the European Union and China from the list of countries against which tariffs could be raised. Trump's mood changes very often. Today, he might agree to Ursula von der Leyen's request to postpone tariff hikes, and tomorrow, he could change his mind and raise them. Therefore, it's too early to relax — this story is far from over.

Wave Pattern for EUR/USD:

Based on the analysis of EUR/USD, I conclude that the pair continues to build a bullish segment of the trend. In the near term, the wave structure will depend entirely on news flow related to Trump's decisions and U.S. foreign policy. Wave 3 of the bullish segment has begun, and its targets could extend up to the 1.25 area. Thus, I consider buying opportunities with targets above 1.1572, corresponding to 423.6% of the Fibonacci extension. It should be remembered that a de-escalation of the trade war could reverse the bullish trend, but for now, there are no signs of reversal or de-escalation.

Wave Pattern for GBP/USD:

The wave structure of GBP/USD has transformed. We are now dealing with a bullish impulse wave. Unfortunately, with Donald Trump in office, markets may experience many shocks and reversals that don't fit neatly into any wave pattern or technical analysis. However, the current working scenario and wave structure remain intact. Wave 3 of the bullish segment is ongoing, with immediate targets at 1.3541 and 1.3714. Therefore, I continue to consider buying, as the market shows no desire to reverse the trend at this point.

Main Principles of My Analysis:

Wave structures should be simple and understandable. Complex structures are hard to trade and often bring unexpected changes.
If you're not confident in the market situation, it's better not to enter.
Absolute certainty in the market's direction does not and cannot exist. Always use Stop Loss orders.
Wave analysis can and should be combined with other types of analysis and trading strategies.

You have already liked this post today

*Disclaimer: The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.