As we forecast the EURUSD hit the key level of 1.3200, during the European session. The strength of upside move seemed more promising, but hasn’t continued into the US session. The pair still is still around 1.3200 and it is at crossroads. That was a break out tryout, but the sellers yesterday were able to push back the bullish attack, finally by the late night, it could close above 1.3200.
Our bet is that it only takes time. In our view today we could see a second run and the EURUSD will close significantly above the 1.3200 level. In our forecast the weekly target is at 1.3390. And, we are waiting for the dollar to weaken against all the major currencies – GBP, EUR, JPY, AUD.
Generally the greenback weakening against EUR and JPY too, because the home prices data showed yesterday that residential sales unexpectedly fell. The recovery of the U.S. housing market is a huge part of the wider economic recovery. The disappointing data is a bad indication of US recovery,
How does the FED read this data? The housing market is directly linked to the job market, so the FED has to maintain the stimulus (QE) because the performance of the economy doesn’t look good.
