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

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