EURUSD loses the upside momentum before New Home Sales


As shown on the 4-hour chart below, the EURO/Dollar loses the upside momentum. Resistance is at 1.3255. Support is at 1.3205. Stability below 1.3205 on a 4-hour closing basis will reverse risks to the downside towards 1.3160 ahead of 1.3066 levels.

Note that a failure to hold below the 1.3205 levels could mean a return to the 1.3255 levels. Stability above 1.3255 levels on a 4-hour closing basis will extend gains towards 1.3300 ahead of 1.3330 levels.

The EURO rises today as a result of positive PMIs from the EURO zone, but In less than 1 hour – 15:00 GMT –  the U.S. is to release official data on New Home Sales, a leading indicator of economic health,this report tends to have a strong impact when it’s released , the market is likely to fluctuate strongly ….

A higher reading than 484K  should be taken as positive/bullish for the USD, while a lower reading than 484K should be taken as negative/bearish for the USD.