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

If price retreats look to the 20-day simple moving average for support.

FOREX 10

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.   



Source: GAIN Capital, TradingView

More from Forex

Disclaimer

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 cityindex.com.sg for the complete Risk Disclosure Statement.