A huge beat on US new home sales: 619K, much better than 521K expected and 531K seen in March (revised up from 511K(. This is a rise of 16.6%, certainly a leap, led by the Northeast of the US. It is the best figure since 2008, when the financial crisis began unfolding. It could be a one-off, but nevertheless, it’s still good news.
This piece of news gave the greenback another push higher and for EUR/USD, it means a push under support at 1.1150. The break is not confirmed yet. The low on March 24th was 1.1143 so we are basically already at a 2 month low.
A move under this line sends the pair to levels last seen earlier in March, before the big ECB announcement that eventually resulted in an upswing for the pair.
In the meantime, the Eurogroup meetings are underway. The rift between the IMF and Germany regarding debt relief remains wide. The IMF wants a deferral in Greek debt payments but the more likely scenario is a deferral of any decision. They are very successful at kicking the can down the road.
Here is how it looks on the chart. Further support awaits at 1.1070 followed by the round number of 1.1070. Resistance is at 1.1180 followed by 1.1180.
