Existing Home Sales report is a leading indicator of housing activity. The indicator is released on a monthly basis, and helps analysts track consumer spending. A higher reading than that expected by the market is bullish for the dollar.
Here are all the details, and 5 possible outcomes for EUR/USD.
Published on Friday at 14:00 GMT.
The Existing Homes Sales Report measures the number of new single-family homes sold the previous month. An increase in home sales sends a strong signal of consumer spending and confidence in the economy.
The indicator jumped to 5.33 million in March, beating the estimate of 5.29 million. The markets are expecting the upward swing to continue, with the April estimate standing at 5.40 million. Will the indicator match or beat this prediction?
Sentiments and levels
The Fed minutes were surprisingly hawkish and the US dollar has responded with sharp gains against the euro. As well, the euro no longer enjoys a safe haven status and feels the weight of the greenback. So, the sentiment is bearish on EUR/USD towards this release.
Technical levels, from top to bottom: 1.1375, 1.1325, 1.1220, 1.1140, 1.1070 and 1.10
Within expectations: 5.36M to 5.44M: In such a case, EUR/USD is likely to move within range, with a small chance of breaking higher.
Above expectations: 5.45M to 5.50M: An unexpected higher reading can push EUR/USD below one support level.
Well above expectations: Above 5.50M: A sharp increase could push the pair below a second support level.
Below expectations: 5.30M to 5.35M: A reading lower than forecast could send EUR/USD above one resistance level.
Well below expectations: Below 5.30M: A very soft reading would signal weakness in the housing sector. In such an outcome, the pair could break through a second resistance level.
For more on the euro, see the EUR/USD forecast.