USD weaker across the majors on Thursday

The EUR/USD pair broke above an ascending triangle bullish continuation pattern on a 30-minute chart.

Uptrend 2

USD weaker across the majors on Thursday

The US Dollar was bearish against most of its major pairs on Thursday with the exception of the CAD. 

On the economic data front, GDP fell -5.0% on quarter in the first quarter second reading (-4.8% expected), from -4.8% in the first quarter advanced reading, a low last seen in 2008. Durable Goods Orders dropped 17.2% on month in the April preliminary reading (-19.0%  expected), from a revised -16.6% in the March final reading, marking a record low. Initial Jobless Claims declined to 2,123K for the week ending May 23rd (2,100K expected), from a revised 2,446K in the previous week. Continuing Claims unexpectedly decreased to 21,052K for the week ending May 16th (25,680K expected), from a revised 24,912K in the week before. 

On Friday, Wholesale Inventories for the April preliminary reading are expected to drop 0.7% on month, compared to -0.8% in March final reading. Personal Income for April is expected to slip 6.0% on month, from -2.0% in March. Personal Spending for April is expected to tumble 12.8% on month, from -7.5% in March. Market News International's Chicago Purchasing Managers Index for May is expected to rise to 40.0 on month, from 35.4 in April. Finally, the University of Michigan's Consumer Sentiment Index for the May final reading is expected to increase to 74.0 on month, from 73.7 in the May preliminary reading.                                                                               

The Euro was bullish against all of its major pairs. In Europe, the European Commission has posted the Eurozone's May Economic Confidence Index at 67.5 (vs 70.6 expected). Consumer Confidence was confirmed at -18.8, vs -22 in April. German CPI was down 0.1% in May, as expected, after a 0.4% rise in April. Inflation rate was 0.6% vs 0.9% a month earlier.

The Australian dollar was bearish against most of its major pairs with the exception of the CAD, JPY and USD.

The EUR/USD pair broke above an ascending triangle bullish continuation pattern on a 30-minute chart. Prices remain supported by their 20-period moving average. Traders who are bullish may consider a stop-loss near the 1.1055 are just below the 20-period MA with a target near 1.115 resistance. A break below the 20-period moving average may put pressure on the EUR/USD down towards 1.103 support at the pattern breakout.

Source: GAIN Capital, TradingView

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