Key Points
- The Euro traded lower sharply recently and broke the 1.1835 support against the US Dollar.
- There is a key bearish trend line forming with resistance at 1.1815 on the hourly chart of EURUSD.
- Recently in the US, the number of New Home sales for August 2017 were released by the US Census Bureau.
- The outcome was below the forecast of +3.3%, as there was a decline of 3.4% in sales.
EURUSD Technical Analysis
The Euro was under a lot of pressure recently and broke the 1.1880 and 1.1835 support levels against the US Dollar. The EURUSD pair traded below the 1.1800 handle and the 21 hourly simple moving average.
The pair traded as low as 1.1758 and currently correcting higher. On the upside, there is a key bearish trend line forming with resistance at 1.1815 on the hourly chart.
Moreover, the 50% Fib retracement level of the last decline from the 1.1865 high to 1.1758 low is also around the trend line to act as a major hurdle for more gains in the near term.
US New Home Sales
Recently in the US, the number of New Home sales for August 2017 were released by the US Census Bureau. The market was positioned for an increase of 3.3% compared with the previous month.
The actual result was below the forecast of +3.3%, as there was a decline of 3.4% in sales. The last reading was revised down from -9.4% to -5.5%. The report added that:
Sales of new single-family houses in August 2017 were at a seasonally adjusted annual rate of 560,000, according to estimates released jointly today by the U.S. Census Bureau and the Department of Housing and Urban Development.
Overall, the EURUSD pair might correct a few pips towards 1.1810-1.1820, but upsides seem to be limited.
