EURUSD trending higher after technical breakout

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

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