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“Sept. 24 (Bloomberg) — Sales of existing U.S. homes unexpectedly fell in August for the first time in four months, signaling the housing recovery will be slow to gain speed.”
The apparent market’s reaction to this? A dip to 1.4676.
The currency pair has been rallying for some time now and as each day plays out, more consolidation seems to be expected.
I was watching the 1.4719 level as the bottom range but this market reaction has pushed the pair lower.
If nothing fundamental has changed, i am expecting the EUR/USD to creep right back up above 1.4700.
Our usual market clue, the S&P 500, took a hit too as some investors apparently realised that the positive sentiments may be mere sentiments.
Nonetheless, i expect similar consolidations here should there be no major shifts in the global stage.
Oil and gold both alike has dipped to the bottom of their previous ranges.
Lets wait for the dust to settle and observe where this currency pair goes.
Bearish momentum may bring it to 1.4600 while the nearest obstacle of any bullish rally will be major line 1.48.
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