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

From time to time, GAIN Capital Australia Pty Ltd (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material.

As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed.