23 Apr 2014
EUR/USD jumps after US new home sales drop
FXStreet (Córdoba) - The EUR/USD bounced off session lows and resumed the upside as the dollar weakened after US new home sales fell to an 8-month low in March.
US new home sales dropped 14.5% last month, posting the biggest fall since July 2013. The EUR/USD received a lift and reached an hourly high of 1.3845 but lacked follow-through to retest highs at 1.3854. At the time of writing, the pair is trading at 1.3835, still up 0.22% on the day.
EUR/USD technical outlook
"The EUR/USD holds above former resistance of 1.3825 with the hourly chart showing indicators losing upward potential in positive territory, and price developing well above a bullish 20 SMA", said Valeria Bednarik, chief analyst at FXStreet. "Last week's high of 1.3860 comes as immediate resistance level, as only above it the pair will be able to extend further".
Bednarik sees immediate resistance levels at 1.3860, 1.3890 and 1.3920, while the analyst locates supports at 1.3825, 1.3780 and 1.3750.
US new home sales dropped 14.5% last month, posting the biggest fall since July 2013. The EUR/USD received a lift and reached an hourly high of 1.3845 but lacked follow-through to retest highs at 1.3854. At the time of writing, the pair is trading at 1.3835, still up 0.22% on the day.
EUR/USD technical outlook
"The EUR/USD holds above former resistance of 1.3825 with the hourly chart showing indicators losing upward potential in positive territory, and price developing well above a bullish 20 SMA", said Valeria Bednarik, chief analyst at FXStreet. "Last week's high of 1.3860 comes as immediate resistance level, as only above it the pair will be able to extend further".
Bednarik sees immediate resistance levels at 1.3860, 1.3890 and 1.3920, while the analyst locates supports at 1.3825, 1.3780 and 1.3750.