Global macro overview for 21/06/2017:
The Existing Home Sales data from the US are scheduled for release at 02:00 pm GMT. Market participants expect sales of previously owned homes in the United States to show again a high level of performance. Last month the sales were at the level of 5.57M sold houses and this month are expected at the level of 5.54M. Nevertheless, even this lower than the previous month number might indicate, that the housing market has been cooling down in recent months, despite a positive sentiment in the home building industry. Moreover, new home sales fell to the slowest pace in eight months and newly issued building permits also eased last month. Some analysts say the reason behind this slump in home construction and sales are shortages of qualified workers and available land for new housing.
Whatever the reason is, today's numbers will shed more light on the current US house market situation. It's is still unclear if this situation is another temporary stumble or the start of something more troubling. The sensitivity of the housing market to business cycle twists is very big, it can be an important indicator of overall conditions at times when a housing is particularly important to the economy. In the US, sellers of used homes often use capital gains from property sales on consumption that stimulate the economy and elevated levels of consumer spending may also increase inflationary pressures. As the result, the US dollar is depreciating in value, so the Federal Reserve Bank might adjust its monetary policy projections sooner than expected.
Let's now take a look at the EUR/USD technical picture on the H4 time frame. After a failure to break out above the golden trend line the market reversed and now is trading close to the technical support at the level of 1.1130. The next support is seen at the level of 1.1108 and 1.1075, the next technical resistance is seen at the level of 1.1211.
