Existing Home Sales measures the change in the annualized number of existing residential buildings that were sold during the previous month. This report helps to gauge the strength of the U.S. housing market and is a key indicator of overall economic strength.
It was released at 5.17 M yesterday , the dollar rose a little bit , let’s take a quick look at USDINDEX daily chart :
Outlook in USD-INDEX remains neutral with risk to the downside as long as trades below the 86.10 levels , yesterday , the pair managed to break above the 85.34 levels (minor resistance ) , It might spike to main resistance 86.10 levels before the next fall or (move) , however , a failure to hold gains above the 85.34 levels on a daily basis could mean a return to the 84.51 levels , a cut will resume fall from 86.85 levels towards the 83.87 levels.
On the upside , break of the 86.10 levels in needed to signal short term bottoming , If seen , focus will be on main resistance 86.85 , otherwise risk remains on the downside even after consolidation !!!!
Note that US Existing Home Sales data doesn’t make any critical changes on the market , today focus will be on US Core CPI (MoM) (Sep) at 12:30 GMT , a reading above 0.2% could push the pair towards the 86.10 levels before the next fall , while a reading below 0.2% could bring limited losses above 84.51 levels.
Any way , the USDINDEX is expected to consolidate within 84.51 – 86.10 range at least the upcoming days (this week) , next week is the last week of the month , US data will decide next destination up or down!!!