CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
☰
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
✖

The EURUSD upside prevails

Article By: ,  Financial Analyst
June 4, 2020 5:22 PM

The EUR/USD upside prevails

The EUR/USD upside prevails

The US Dollar was bearish against most of its major pairs on Thursday with the exception of the CAD and JPY. On the economic data front, the Trade Deficit increased to 49.4 billion dollars on month in April (as expected), from a revised 42.3 billion dollars in March. Initial Jobless Claims fell to 1,877K for the week ending May 30th (1,833K expected), from a revised 2,126K in the prior week. Continuing Claims rose to 21,487K for the week ending May 23rd (20,000K expected), from a revised 20,838K in the previous week. On Friday, Change in Nonfarm Payrolls for May is expected to increase to -7,500K on month, from -20,537K in April. Finally, the Unemployment Rate for May is expected to jump to 19.4% on month, from 14.7% in April.                                                                                              

The Euro was bullish against all of its major pairs. In Europe, the ECB kept its main refinancing rate unchanged at 0.000%, as expected. The envelope for the pandemic emergency purchase program (PEPP) will be increased by 600 billion euros to a total of 1,350 billion euros. The horizon for net purchases under the PEPP will be extended to at least the end of June 2021. Research firm Markit has published U.K. Construction PMI for May was released at 28.9 (vs 29.4 expected). The European Commission has posted April retail sales at -11.7% (vs -15.0% on month expected). 

The Australian dollar was mixed against all of its major pairs. 


The EUR/USD continues its climb gaining 103 pips in Thursday's trading to 1.1336 the day's range was 1.1195 - 1.1362. Yesterday we drew up a trading scenario on the pair as prices remained inside a bullish trend channel. Today, all resistance targets identified yesterday have been reached. So what now? We continue to ride the uptrend. Traders that are remaining long might want to consider a stop at the 1.13 support level. A break below 1.13 could send the pair back into its longer term bullish trend channel. 


Source: GAIN Capital, TradingView

Happy trading. 

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. CFD and Forex Trading are leveraged products and your capital is at risk. They may not be suitable for everyone. Please ensure you fully understand the risks involved by reading our full risk warning.

City Index is a trading name of StoneX Financial Ltd. Head and Registered Office: 1st Floor, Moor House, 120 London Wall, London, EC2Y 5ET. StoneX Financial Ltd is a company registered in England and Wales, number: 05616586. Authorised and regulated by the Financial Conduct Authority. FCA Register Number: 446717.

City Index is a trademark of StoneX Financial Ltd.

The information on this website is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement.

© City Index 2024