“Good enough†is all the US dollar needs. An OK result in new home sales ended a very minor sale of greenbacks and it challenged the next levels.
For EUR/USD, this is enough to send it to the next level. We are getting closer to the next 12 year lows.
Existing home sales dropped, and even more than expected, to 5.36 million (annualized). Nothing exciting, but good enough. In the euro-zone, data actually came out better than expected earlier in the day, with PMIs looking upbeat, especially in Germany.
Nevertheless, this is the result. The low so far is 1.0590 as the pair still establishes itself on lower ground. Further support appears at 1.0530, which was a low back in April, 7 months ago.
The 12 year low is 1.0460 and it’s not that far. It was seen in March, just after the successful implementation of QE by the ECB.
Will EUR/USD be seen by year end as Goldman says? Anything is possible, but we could also see a fake move below 1.0460 only to see a bounce.
