The EUR/USD appears to be advancing in a strong short-term uptrend

Forex trading
The US Dollar was bearish against all of its major pairs on Wednesday. On the US economic data front, the Mortgage Bankers Association's Mortgage Applications rose 0.8% for the week ending December 18th, compared to +1.1% in the week before. Durable Goods Orders increased 0.9% on month in the November preliminary reading (+0.6% expected), compared to a revised +1.8% in the October final reading. Initial Jobless Claims dropped to 803K for the week ending December 19th (880K expected), from a revised 892K in prior week. Continuing Claims unexpectedly fell to 5,337K for the week ending December 12th (5,560K expected), from a revised 5,507K in the previous week. Personal Income slipped 1.1% on month in November (-0.3% expected), compared to a revised -0.6% in October. Personal Spending declined 0.4% on month in November (-0.2% expected), compared to a revised +0.3% in October. The University of Michigan's Consumer Sentiment Index fell to 80.7 on month in the December final reading (81.1 expected), from 81.4 in the December preliminary reading. Finally, New Homes Sales tumbled to 841K on month in November (995K expected), from a revised 945K in October.

On Thursday, no major economic data is expected.

The Euro was bearish against most of its major pairs with the exception of the JPY and USD. In Europe, import prices in Germany rose 0.5% in November, compared with +0.3% expected and the previous month.

The Australian dollar was bullish against most of its major pairs with the exception of the NZD and GBP.

From a chartist's point of view, on a daily chart, the EUR/USD currency pair has been rising in a strong short-term uptrend since price broke out above 1.1925 in late-November. The simple moving averages (SMAs) are positioned in a bullish manner, with the 20-day SMA above the 50-day SMA. The pair will likely continue to advance towards the 1.2290 and 1.2415 resistance levels. If price pulls back speculators should look for support around the 20-day SMA. If the pair falls below the 20-day SMA, it would be a call for caution and traders should look to 1.2070 for a rebound. If price fails to be supported at 1.2070 it would be a bearish signal that could send the EUR/USD back down to 1.1925.   

Market chart of The EUR/USD Appears To Be Advancing In A Strong Short-term Uptrend. Published in December 2020 by FOREX.com

Source: GAIN Capital, TradingView

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