18 Aug 2015
EUR/USD extends losses after US housing data
FXStreet (Córdoba) - EUR/USD came under renewed pressure and dropped to a 6-day low as the dollar benefited from strong US housing starts.
US housing starts rose 0.2% in July to a seasonally adjusted annual rate of 1.206 million, the highest since October 2007 and above the 1.190 million expected by analysts. Meanwhile, new applications for building permits, a sign of future demand, declined 16.3% to 1.119 million although they are 7.5% higher compared to one year ago.
The dollar reacted negatively in the seconds that followed the release but then turned higher as investors digested data, dragging EUR/USD below the 100-day SMA to a low of 1.1038. At time of writing, EUR/USD is trading at 1.1045, recording a 0.29% loss on the day
EUR/USD levels to watch
As for technical levels, immediate supports are seen at 1.1024 (Aug 12 low), 1.1000 (psychological level) and 1.0960 (Aug 11 low). On the other hand, resistances could be found at 1.1093 (Aug 18 high), 1.1124 (Aug 17 high) and 1.1188 (Aug 14 & 13 highs).
US housing starts rose 0.2% in July to a seasonally adjusted annual rate of 1.206 million, the highest since October 2007 and above the 1.190 million expected by analysts. Meanwhile, new applications for building permits, a sign of future demand, declined 16.3% to 1.119 million although they are 7.5% higher compared to one year ago.
The dollar reacted negatively in the seconds that followed the release but then turned higher as investors digested data, dragging EUR/USD below the 100-day SMA to a low of 1.1038. At time of writing, EUR/USD is trading at 1.1045, recording a 0.29% loss on the day
EUR/USD levels to watch
As for technical levels, immediate supports are seen at 1.1024 (Aug 12 low), 1.1000 (psychological level) and 1.0960 (Aug 11 low). On the other hand, resistances could be found at 1.1093 (Aug 18 high), 1.1124 (Aug 17 high) and 1.1188 (Aug 14 & 13 highs).