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


This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.

GAIN Capital Singapore Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the GAIN Capital group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), GAIN Capital Singapore Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact GAIN Capital Singapore Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.

In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither GAIN Capital Singapore Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.

GAIN Capital Singapore Pte. Ltd. is not under any obligation to update this report.

Trading CFDs and FX on margin carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit for the complete Risk Disclosure Statement.