USD weaker across the majors on Thursday

The EUR/USD pair broke above an ascending triangle bullish continuation pattern on a 30-minute chart.

Uptrend 2

USD weaker across the majors on Thursday

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

On the economic data front, GDP fell -5.0% on quarter in the first quarter second reading (-4.8% expected), from -4.8% in the first quarter advanced reading, a low last seen in 2008. Durable Goods Orders dropped 17.2% on month in the April preliminary reading (-19.0%  expected), from a revised -16.6% in the March final reading, marking a record low. Initial Jobless Claims declined to 2,123K for the week ending May 23rd (2,100K expected), from a revised 2,446K in the previous week. Continuing Claims unexpectedly decreased to 21,052K for the week ending May 16th (25,680K expected), from a revised 24,912K in the week before. 

On Friday, Wholesale Inventories for the April preliminary reading are expected to drop 0.7% on month, compared to -0.8% in March final reading. Personal Income for April is expected to slip 6.0% on month, from -2.0% in March. Personal Spending for April is expected to tumble 12.8% on month, from -7.5% in March. Market News International's Chicago Purchasing Managers Index for May is expected to rise to 40.0 on month, from 35.4 in April. Finally, the University of Michigan's Consumer Sentiment Index for the May final reading is expected to increase to 74.0 on month, from 73.7 in the May preliminary reading.                                                                               

The Euro was bullish against all of its major pairs. In Europe, the European Commission has posted the Eurozone's May Economic Confidence Index at 67.5 (vs 70.6 expected). Consumer Confidence was confirmed at -18.8, vs -22 in April. German CPI was down 0.1% in May, as expected, after a 0.4% rise in April. Inflation rate was 0.6% vs 0.9% a month earlier.

The Australian dollar was bearish against most of its major pairs with the exception of the CAD, JPY and USD.

The EUR/USD pair broke above an ascending triangle bullish continuation pattern on a 30-minute chart. Prices remain supported by their 20-period moving average. Traders who are bullish may consider a stop-loss near the 1.1055 are just below the 20-period MA with a target near 1.115 resistance. A break below the 20-period moving average may put pressure on the EUR/USD down towards 1.103 support at the pattern breakout.



Source: GAIN Capital, TradingView

Happy trading.

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.

Important Notice:

Cryptocurrencies are not legal tender currency and trading of derivatives on Cryptocurrencies are currently not covered under any regulatory regime in Singapore. Consequently, investors should be aware they do not have protection under the Securities and Futures Act (Cap. 289). Please ensure that you are fully aware of the risks.