EUR/USD trending higher after technical breakout

The 20-day moving average is acting as support on the climb: Chart

EU (1)

The US Dollar was bearish against all of its major pairs on Thursday. On the US economic data front, Housing Starts rose to 1,547K on month in November (1,535K expected), from a revised 1,528K in October. Initial Jobless Claims increased to 885K for the week ending December 12th (818K expected), from a revised 862K in the week before. Finally, Continuing Claims fell to 5,508K for the week ending December 5th (5,700K expected), from a revised 5,781K in the prior week. 

On Friday, the Leading Index for November is expected to rise 0.5% on month, compared to +0.7% in October.  

The Euro was bullish against most of its major pairs with the exception of the AUD. In the U.K., the Bank of England decided to keep its key interest rate unchanged at 0.100%. The size of its asset purchase program remains unchanged at 895 billion pounds. Also, November Eurozone consumer price index final reading has been confirmed at -0.3% on month as expected.

The Australian dollar was bullish against all of its major pairs.

Looking at movers, the EUR/USD gained around 67 pips in Thursday's trading making it the top performing pair against the majors. The pair looks to be back in a well-established uptrend after breaking above a consolidation zone in place since August. Key resistance at the 1.2265 level has been broken to the upside. The next major target resistance levels are 1.2415 and 1.2535 in extension. A break below the 20-day moving average would be a bearish warning signal. Key support can be seen at the breakout level of 1.202. 

Source: GAIN Capital, TradingView

More from Forex

Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.

Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.

Open an Account