The Commerce Department said housing starts increased 2.6 percent to a seasonally adjusted annual rate of 717,000 units. March's starts were revised up to a 699,000-unit pace from a previously reported 654,000 unit rate.

The housing market is showing some signs of life after collapsing six years ago, but remains hobbled by a glut of unsold homes.

However, rising demand for rentals, which has seen builders breaking more ground on apartment projects, is helping to stabilize the market.

Although home building accounts for about 2.3 percent of gross domestic product, the housing market has an outsized reach on the U.S. economy. A separate report on Wednesday showed applications for loans to buy homes fell last week.

Housing starts last month rose across the board. Groundbreaking for single-family homes increased 2.3 percent. This segment accounts for most of the market. Starts for multi-family homes advanced 3.2 percent.

Despite last month's overall jump in starts, they remain less than a third of their peak in January 2006. Residential construction in the first quarter grew at the fastest pace in nearly two years and is expected to contribute to economic growth this year for the first time since 2005.

Global stocks fell while European shares swung between gains and losses as talks to form a Greek government failed. Greece will hold new elections that may threaten spending cuts required to secure 240 billion euros ($306 billion) in bailouts. German Chancellor Angela Merkel and French President Francois Hollande said they would consider measures to spur Greece's economy as long as voters committed to austerity measures.

Facebook Inc. (FB) is boosting the number of shares for sale in its initial public offering to 421.2 million, allowing the world's most popular social network to raise as much as $16 billion.

Industrial production in the U.S. climbed more than forecast in April, propelled by gains in auto manufacturing and utility use.

Output at factories, mines and utilities increased 1.1 percent last month, the most since December 2010, after a 0.6 percent decline in March that was revised from no change, the Federal Reserve reported today in Washington.

Economist Shayne Heffernan of www.livetradingnews.com Market Outlook.

Crude Oil (Jun 12) intraday: the downside prevails.

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Pivot: 93.40
Our Preference: SHORT positions below 93.4 with targets @ 91.8 & 91.
Alternative scenario: The upside penetration of 93.4 will call for a rebound towards 94.25 & 95.15.
Comment: the RSI advocates for further downside.

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Opinion published is an intraday view. Green Lines Represent Resistance | Red Represent Support Levels | Light Blue is a Pivot Point |  Black represents the price when the report was produced width=1


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GOLD (Spot) intraday: the downside prevails.

/Pivot: 1550.00
Our Preference: SHORT positions below 1550 with 1527 & 1520 as next targets.
Alternative scenario: The upside penetration of 1550 will call for a rebound towards 1559 & 1565.
Comment: the RSI calls for a new downleg.

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Opinion published is an intraday view. Green Lines Represent Resistance | Red Represent Support Levels | Light Blue is a Pivot Point | Black represents the price when the report was produced


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EUR/USD intraday: the downside prevails.

/Pivot: 1.274
Our preference: Short positions below 1.274 with targets @ 1.2675 & 1.2625 in extension.
Alternative scenario: Above 1.274 look for further upside with 1.277 & 1.2815 as targets.
Comment: the pair is rebounding and is challenging its resistance.

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Opinion published is an intraday view. Green Lines Represent Resistance | Red Represent Support Levels | Light Blue is a Pivot Point | Black represents the price when the report was produced


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GBP/USD intraday: the downside prevails.

/Pivot: 1.6
Our preference: Short positions below 1.6 with targets @ 1.589 & 1.586 in extension.
Alternative scenario: Above 1.6 look for further upside with 1.605 & 1.6085 as targets.
Comment: the pair is rebounding but stands below its resistance.

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Opinion published is an intraday view. Green Lines Represent Resistance | Red Represent Support Levels | Light Blue is a Pivot Point | Black represents the price when the report was produced


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USD/CAD intraday: further advance.

/Pivot: 1.005
Our preference: Long positions above 1.005 with targets @ 1.013 & 1.017 in extension.
Alternative scenario: Below 1.005 look for further downside with 1.002 & 0.999 as targets.
Comment: the RSI lacks downward momentum.

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Opinion published is an intraday view. Green Lines Represent Resistance | Red Represent Support Levels | Light Blue is a Pivot Point | Black represents the price when the report was produced


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USD/JPY intraday: further advance.

/Pivot: 80.1
Our preference: Long positions above 80.1 with targets @ 80.55 & 80.65 in extension.
Alternative scenario: Below 80.1 look for further downside with 79.95 & 79.8 as targets.
Comment: the pair stands above its new support and remains on the upside.

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Opinion published is an intraday view. Green Lines Represent Resistance | Red Represent Support Levels | Light Blue is a Pivot Point | Black represents the price when the report was produced


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AUD/USD intraday: the downside prevails.

/Pivot: 0.995
Our preference: Short @ 0.9925 with targets @ 0.9855 & 0.978 in extension.
Alternative scenario: Above 0.995 look for further upside with 1.002 & 1.0075 as targets.
Comment: the RSI lacks upward momentum.

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Opinion published is an intraday view. Green Lines Represent Resistance | Red Represent Support Levels | Light Blue is a Pivot Point | Black represents the price when the report was produced


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USD/CHF intraday: the upside prevails.

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Pivot: 0.9415
Our preference: Long positions above 0.9415 with targets @ 0.9475 & 0.952 in extension.
Alternative scenario: Below 0.9415 look for further downside with 0.937 & 0.932 as targets.
Comment: the pair is rebounding on its new support.

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Opinion published is an intraday view. Green Lines Represent Resistance | Red Represent Support Levels | Light Blue is a Pivot Point | Black represents the price when the report was produced

Shayne Heffernan

Shayne Heffernan oversees the management of funds for institutions and high net worth individuals.

Shayne Heffernan holds a Ph.D. in Economics and brings with him over 25 years of trading experience in Asia and hands on experience in Venture Capital, he has been involved in several start ups that have seen market capitalization over $500m and 1 that reached a peak market cap of $15b. He has managed and overseen start ups in Mining, Shipping, Technology and Financial Services.Read the Terms of Service