Eur/usd - page 438
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EUR/USD dragged down to 1.1144, 0.67% weaker today. Intraday high was marked at 1.227 and low at 1.1132, rolling away from this week highs.
EUR/USD falls to 1-month low, amid increased expectations for June hike
EUR/USD fell to fresh 1-month lows on Tuesday, as vigorous new home data in the U.S. augmented the dollar raising the likelihood that the Federal Reserve could approve its first interest rate hike of the year at its next meeting in mid-June.
The currency pair traded in a tight range between 1.1139 and 1.1226, before settling at 1.1141, down 0.70% for the session. With the sharp losses, the euro closed below 1.12 against the dollar for the first time in May. For the month as a whole, the euro has only recorded four winning sessions in 19 trading days. Since hitting nine-months in early-May, EUR/USD has fallen considerably by nearly 3%.
EUR/USD likely gained support at 1.1055, the low from March 15 and was met with resistance at 1.1434, the high from May 12.
The dollar extended gains after the U.S. Commerce Department said on Tuesday morning that new home sales in April soared 16.6% to a seasonally adjusted annual rate of 619,000, the highest monthly gain in nearly 25 years. With the sharp gains, new home sales surged to their highest level since January, 2008, topping the next closest reading by more than 70,000. Analysts expected to see slight gains of 12,000 to 523,000 after March's subdued reading. The stellar figures are a positive sign for economists ahead of a bevy of monthly reports set to be released later this week. On Wednesday, the Federal House Finance Agency (FHFA) is expected to report a 0.5% gain in home prices for single-family housing for the month of March. It comes after the FHFA's House Price Index only rose by 5.6% on an annual basis a month earlier. Economists typically keep a close eye on home appreciation in low-inflation environments such as the one the U.S. economy is currently experiencing. At week's end, analysts will receive updates on second quarter GDP and the May final reading of consumer sentiment from the University of Michigan.
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The single currency resumed its decline against the US dollar on Tuesday. The euro lost 80 pips at a closing price of 1.1139. The price is heading towards the 1.11 mark, which is acting as a support. Resistance is seen at 1.357.
Yesterday EURUSD fell with a wide range and closed near the low of the day also managing to close below the previous day range, suggesting a strong bearish momentum.
The pair is trading below the 10 and the 50-day moving averages that are acting as dynamic resistances although still trading above the 200-day moving average that is acting as a dynamic support.
The key levels to watch are: The 50-day moving average at 1.1335 (resistance), the 10-day moving average at 1.1244 (resistance), a daily resistance at 1.1237, a swing low at 1.1141 (support) and a daily support at 1.1097.