...but seeing a rebound. New home sales.468K va 550K expected
Whoops. A big miss from the New home sales has the dollar heading back lower, but not for long
The EURUSD - which bottomed at the 1.1000 level (1.1003) before moving back up to the 1.1030 area before the release - rose to 1.1047 after the surprise data. The price has rotated back lower and has retraced back to 1.1028 now. where the 100 and 200 bar MA on the 5 minute chart is found. It seems to be one of those herky-jerky days. Perhaps holding the 100 and 200 bar MA is positive for traders, but it may just be a trading environment where action can swing around dependent on the external flows. The sales took some of the wind out of the recent better-ish US data (and dollar strength).
The USDJPY fell from topside trend line on the 5 minute chart prior to the release, moved to a low of 120.55 and retraced 50% of that move to 120.796. This is more bearish below the 50%. The pair is also back below the 200 day MA at the 102.96 level. In September there were a number of breaks above the 200 day MA but no closes. ON Friday, there was a close above, but if today cannot climb back above, traders will be disappointed once again.
The GBPUSD is back higher and threatens to move back into the "box" which was broken out of last week. A move above the 1.5377-86 would look toward the 1.5401 where the 100 hour MA (blue line) and the 50% are converging...
