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EUR/USD falls to the lowest in two months on superb

A huge beat on US new home sales: 619K, much better than 521K expected and 531K seen in March (revised up from 511K(. This is a rise of 16.6%, certainly a leap, led by the Northeast of the US. It is the best figure since 2008, when the financial crisis began unfolding. It could be a one-off, but nevertheless, it’s still good news.

This  piece of news gave the greenback another push higher and for  EUR/USD, it means a push under  support at 1.1150. The break is not confirmed yet. The low on March 24th was 1.1143 so we are basically already at a 2 month low.

A move under this line sends the pair to levels last seen  earlier in March, before the big ECB announcement that  eventually resulted in an upswing for the pair.

In the meantime, the Eurogroup meetings are underway. The rift between the IMF and Germany regarding debt relief remains wide. The IMF wants a deferral in Greek debt payments but the more likely scenario is a deferral of any decision. They are very successful at kicking the can down the road.

Here is how it looks on the chart. Further support awaits at 1.1070 followed by the round number of 1.1070. Resistance is at 1.1180 followed by 1.1180.

new home sales send EURUSD down

Yohay Elam

Yohay Elam

Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.