Key Points
- The Euro moved down sharply after the FOMC interest rate decision and moved below 1.1950 against the US Dollar.
- There was a break below a crucial bullish trend line with support near 1.1974 on the hourly chart of EURUSD.
- Recently in the US, the Existing Home Sales for August 2017 were released by the National Association of Realtors.
- The outcome was below the forecast of +0.3%, as there was a decline in sales by 1.7%.
EURUSD Technical Analysis
The Euro was seen trading higher above the 1.2030 level against the US Dollar. The EURUSD pair traded as high as 1.2040, found sellers and after the FOMC interest rate decision started a sharp downside move.
The downside move was such that the pair broke the 1.2000 support zone along with the 21 hourly simple moving average and traded as low as 1.1868. At the moment, the pair is correcting towards the 23.6% Fib retracement level of the last decline from the 1.2040 high to 1.1868 low.
Selling rallies close to the 1.1930-50 might be considered in the short term with a stop of around 20-25 pips.
US Existing Home Sales
Recently in the US, the Existing Home Sales for August 2017 were released by the National Association of Realtors. The market was positioned for a minor increase in sales by 0.3%, compared with the previous month.
The actual result was below the forecast of +0.3%, as there was a decline in sales by 1.7%. However, it was better than the last decline of 1.3%. Commenting on the same, the NAR chief economist, Lawrence Yun, stated:
The slump in existing sales stretched into August despite what remains a solid level of demand for buying a home. “Steady employment gains, slowly rising incomes and lower mortgage rates generated sustained buyer interest all summer long, but unfortunately, not more home sales.
However, the EURUSD pair might correct a few pips from the current levels, but upsides remain capped near 1.1925.
