Housing data have been quite disappointing lately, and it is worth remembering that the sector that triggered the subprime mortgage crisis of 2007/8. The market is still sensitive to the number of negative homes.
The EURUSD four hour chart shows that the bearish momentum continues to be strong despite the fact that the indicators remain within the oversold levels as they resumed their declines following a modest upward correction, while the 20 SMA continues to accelerate to the south after breaking below the larger ones. So far, the pair has reached 1.1730, and acceleration across the level should lead to an extension toward the 1.1690 / 1.17000 region, en route to the August low at 1,1661.
Immediate resistance, on the other hand, comes at 1.1770, followed by 1.1810. Beyond the latter, the pair has room to extend its recovery to 1.1850.
The dollar is leading on Wednesday, spreading its momentum upward against all of its biggest rivals. The EURUSD pair is approaching the figure of 1.1700, as the lack of news from Europe leaves the way for free for the dollar to run. Later, however, a couple of top-level macroeconomic reports from the United States can disrupt progress, with negative results. The United States will publish its durable goods orders for August, which are expected to have rebounded after plummeting in July. In addition, US will release housing data for the same month, while more Fed speakers will be live.
Written by FXStreet