The vast majority of home sales in the US are of existing houses. This is a major indicator for the housing sector and for the whole economy, and is expected to rock the markets, as always. Here are the details, and 5 possible scenarios for EUR/USD. Published on Wednesday at 14:00 GMT. Indicator Background The housing sector enjoyed a boom during the 2000s, and then suffered a bust that dragged the whole system down. A recovery in this sector is necessary for the economy to rise. Not only are existing homes the majority of homes, they also contain the weakest link: foreclosed homes. Ben Bernanke said that these homes are suffering from lower prices and delaying the recovery. A release of this bottle neck means more sales in general and push prices higher, encouraging more transactions. In the past few months, the annual pace of sales has stabilized at around 5 million. This is OK, but not enough for a recovery. After last month’s drop to 4.82 million, a rise to 4.91 is expected now. Sentiment and Levels EUR/USD has stabilized after the European stress tests, and is awaiting a serious solution for Greece. The leaders are meeting on Thursday, but expectations are low. This makes the pair stable enough to trade, as the effects of the debt crisis will likely be muted until the end of the summit. The sentiment is neutral. Technical levels, from top to bottom: 1.4450, 1.4375, 1.4282, 1.42, 1.4160, 1.4120, 1.4070.1.4030 and 1.3950. 5 Scenarios Within expectations: 4.7 to 5 million: Staying in range means that the pair is likely to shake, but not get out of range. Above expectations: 5 to 5.4 million: A higher range, up to the highest level seen in 2011 will be positive for the dollar. EUR/USD has a chance of losing one support level. Well above expectations: Above 5.4 million: A strong recovery in the sector could send EUR/USD below a second support level. This will lower the chances of QE3 significantly. Below expectations: 4.2 to 4.7 million: A slowdown below the range means a weaker dollar, and a rise of EUR/USD, with a decent chance of breaking higher. Well below expectations: Below 4.2 million: A serious slump in housing will elevate the chances of another QE program, in order to stimulate transactions. This can send euro/dollar to higher levels, perhaps above two levels. For more on EUR/USD, see the euro to dollar forecast. 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. Yohay's Google Profile View All Post By Yohay Elam Expert score 5 Etoro - Best For Beginner & Experts0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 5 Read Review Open My Free Account Your capital is at risk. Opinions share Read Next QE in the Euro-zone: A Solution to Satisfy (Almost) Yohay Elam 10 years The vast majority of home sales in the US are of existing houses. This is a major indicator for the housing sector and for the whole economy, and is expected to rock the markets, as always. Here are the details, and 5 possible scenarios for EUR/USD. Published on Wednesday at 14:00 GMT. Indicator Background The housing sector enjoyed a boom during the 2000s, and then suffered a bust that dragged the whole system down. A recovery in this sector is necessary for the economy to rise. Not only are existing homes the majority of homes, they also contain the weakest… Top Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.
