The USD continues to weaken

The EUR/USD had the largest move on Wednesday gaining 65 pips. Will the uptrend continue?

Charts (3)

The USD continues to weaken 

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

On the economic data front, the Mortgage Bankers Association's Mortgage Applications fell 3.9% for the week ending May 29th, from +2.7% in the week before. Automatic Data Processing's Employment Change rose to -2,760K on month in May (-9,000K expected), from a revised -19,557K in April. Factory Orders decreased 13.0% on month in April (13.4% expected), from a revised -11.0% in March. Durable Goods Orders dropped 17.7% on month in the April final reading (-17.2% expected), from -17.2% April preliminary reading. 

On Thursday, the Trade Deficit for April is expected to increase to 49.2 billion dollars on month, from 44.4 billion dollars in March. Initial Jobless Claims for the week ending May 30th are expected to fall to 1,843K, from 2,123K in the prior week. Finally, Continuing Claims for the week ending May 23rd are expected to slide to 20,050K, from 21,052K in the previous week,                                                                                            

The Euro was bullish against most of its major pairs with the exception of the NZD. In Europe, research firm Markit has published final readings of May Services PMI for the Eurozone at 30.5 (vs 28.7 expected), for Germany at 32.6 (vs 31.4 expected), for France at 31.1 (vs 29.4 expected) and for the U.K. at 29.0 (vs 28.0 expected). The European Commission has posted April jobless rate at (vs 8.2% expected) and PPI at (vs -4.2% on year expected). The German Federal Statistical Office has reported May jobless rate at 6.3% (vs 6.2% expected).

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

Looking at the USD, the dollar index fell dropped 0.37pt to 97.30 as the USD continues to slip. The EUR/USD had the largest move on Wednesday gaining 65 pips to 1.1235. The day's range was 1.1167 - 1.1257. Looking at the pair, prices remain in a bullish trend channel after confirming a couple of classic triangle continuation patterns. As long as price action remains above 1.1185 support look for a continuation of the trend.

Source: GAIN Capital, TradingView

Happy trading.

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.