EUR/USD Extends Gains to 2-Month Highs After US GDP Data

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The EUR/USD currency pair on Thursday extended the current 2-week gains to top 1.1054 thereby setting a new 2-month high. The currency pair continues to trade within an ascending channel. It recently crossed above the 100-hour and the l200-hour SMA lines.

The recent rally has pushed it towards overbought levels of the 14-hour RSI in the 60-min chart. The pair has now made a short-term bullish breakout of a sideways channel that dates back to late March.

EUR/USD Fundamentals Overview

From a fundamental perspective, the EUR/USD currency pair is trading at the back of a relatively busy period in the US. On Thursday, the initial jobless claims for the week ending May 22, missed the expectations of 2.1M with 2.123M. The preliminary annualized GDP for Q1 also came short with -5% versus -4.8%. On the other hand, non-defense capital goods orders ex-aircraft for April beat the expectation of -10% with -5.8%. The preliminary Gross Domestic Product Prices Paid for Q1 outshone 1.4% with 1.6%. Durable goods orders for April also impressed with -17.2% versus an expectation of -19%.

Durable Goods Orders ex-defense and Personal Expenditure Prices paid came in line with expectations. However, the preliminary core personal expenditure for Q2 missed the (QoQ) expectation of 1.8% with 1.6% while durable goods orders ex-transportation outshone -14% with -7.4%. Pending home sales for April missed the (MoM) expectation of -15% with -21.8% while new home sales impressed with 0.623M versus 0.49M.

EUR/USD Technical Analysis (the 60-min Chart)

Technically, the EUR/USD currency pair appears to be trading within an ascending channel in the 60-min chart. This indicates a short-term bullish bias in the market sentiment. The pair is now close to crossing over to overbought levels of the 14-hour RSI. This could trigger a pullback.

The bears will be targeting short-term pullback profits at around 1.0991 or lower at 1.0932. On the other hand, the bulls will target profits at around 1.1122 or higher at 1.1194.

EUR/USD Technical Analysis (the Daily Chart)

In the daily chart, the EUR/USD currency pair appears to be trading within a descending channel. This indicates a long-term bearish bias in the market sentiment. The pair is now facing strong trendline resistance after the recent rebound.

The bulls will be looking to extend gains above the resistance towards 1.1427 or higher at 1.1633. On the other hand, the bears will target profits at around 1.0910 or lower at 1.0730.

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