New home sales dropped to 313,000 in February down from the downwardly revised 218,000 in January, while prices have accelerated in a pace the biggest since more than a year; according to the U.S. commerce department. An increase of home prices could be a relief signs within this sector however the number of homes sold remains unconvincing. A mixed reaction and volatility is expected while approaching the weekend.
In generalCurrencies were mixed against the greenback today, where we witness the EUR/USD pair rally this morning after printing a low at the 200-hour SMA and 1.3140 horizontal support. The pair retested the top the recent range bound at 1.3290 before retreating again. In general; trading over the short term is expected to be confined among this range of 1.3140 support and 1.3300 resistance, where breaking the first to the downside exposes 1.3000 major support for a retest. While to the upside a breach above 1.3300 could hint a more sustained move as we have seen a major inverted head and shoulders pattern forming over the daily chart, we shall anticipate a test of 1.3500 if the neckline of the pattern at 1.3300 was taken.
Moving to the GBP/USD the pair rebounded as well today to retest the top the range near 1.5915. In general the pair has been range-trading since more than a week; setting static support and resistance levels among this range starting from 1.5820 support followed by the 200-hours moving average currently around 1.5785 and 1.5750 static support, to the upside 1.5915 is hard to bear; if we witness a few hours of trading above that level we may trade at 1.6000 psychological level again. Breaching one of the aforementioned levels should lead to the following one.
After breaking the neckline of the double top pattern we mentioned yesterday; the USD/JPY pair retested the neckline at 83.00-83.20 area before resuming the bearish wave currently trading around 82.20 and near to the next major static support at 81.95-82.00. Stochastic has gone within overbought area, meanwhile formed a possible bullish divergence , anyhow the divergence has not been confirmed yet, we look to see stability back above the recent low at 82.30 to expect another upside attempt. Main levels to watch are 82.00, 82.30, 82.90, and 83.20.
Gold's bearish wave was halted around 1630.00, the metal has rebounded sharply today trading back inside the breached flag formation, and currently testing the key resistance around the 200-Hours SMA and 1660.00 horizontal resistance. Trading for some time above the level could lead to another test of 1670.00 high and maybe higher towards the ascending resistance shown on image and around 1677.00. To the downside 1640.00 is the key towards another dip.