FOREX NEWS: MIXED PRICE ACTION AHEAD OF US HOUSE-MARKET DATA
EUR/USD
Forex News: Friday’s entire trading session was controlled by the bears as the US Dollar benefited from a better than expected value of the Durable Goods Orders and the Euro was weakened by a disappointing German
Technical Outlook
The current direction is likely to remain unchanged until price reaches 1.3400 which is the next support. The Relative Strength Index shows an oversold condition of the pair, a fact which increases the possibility of bullish corrections. If this will be the case, the first place where price can resume downwards motion is the resistance located at 1.3480. It is also possible to see ranging price action, considering the fact that Monday’s are usually slow days and that Friday price moved pretty strong compared to its latest behavior.
Fundamental Outlook
The only notable event of the day is the release of the US Pending Home Sales numbers scheduled at 2:00 pm GMT. The indicator shows the change in the number of houses under contract to be sold upon the completion of a final transaction and usually a higher value is beneficial to the US Dollar; today’s expected change is -0.2%, a major drop from the previous 6.1%.
GBP/USD
The pair exhibited ranging price action Friday as the release of the American Durable Goods Orders didn’t seem to affect the Pound too much.
Technical Outlook
Price is likely to hit 1.6950 before retracing higher, but if the level will be broken to the downside, the next support is located at 1.6920 and we don’t expect it to be broken today. To the upside the first target is 1.7010 and we might see moves in close vicinity of this level depending on the outcome of the US Pending Home Sales release.
Fundamental Outlook
The United Kingdom didn’t schedule any news releases for today so price will be mainly affected by technical factors and the US house data.