US housing: a bubble or not yet?

By GG Analyst in Reviews 0 Comment

EUR/USD

There’s another portion of good news from the US housing market. New Home Sales surged up by 8.3% to 497K annually in June. Against June 2012 it makes the increase of 38.1%. Yet, here we should mention a steep decline of the median home price to 249.7K against 262.8K a month ago and 282.1 two months ago. Remember that on Tuesday we learnt about a 1.5% decrease in existing home sales , but at the same time were struck by the sharp rise in prices. Apparently, Americans preferred new homes as there appeared offers to the buyers’ liking. What did yesterday’s more…

Disbalance through the Fed’s fault

By GG Analyst in Reviews 0 Comment

DXY

The euro remains in the uptrend, forming a chain of ascending highs. It is a good sign. It is also good that EURUSD feels more and more confident above 1.32. Yesterday the intraday high was set at 1.3238. Actually, we can’t say that the current growth of the pair is as speedy as the preceding decline. That drop was caused by the market expectations of QE-3 reduction in the near future. Meanwhile, the current growth results from the revision of these expectations. The same hypothesis is proved by the US debt market. There last month’s upsurge of yields has been almost more…

USD is falling in the news vacuum

By GG Analyst in Reviews 0 Comment

EUR/USD

Though with certain hesitations the single currency continued to move up yesterday. To be more exact, the US dollar continued its retracement. EURUSD in the heat of the US session rose above 1.3170 and even managed to hit a new high since July 11, however it wasn’t followed by an upward move. To some extent, it is connected with low trading activity in the absence of important macroeconomic news yesterday. Looking back at yesterday’s statistics, Existing Home Sales deserve attention. Against expectations, this indicator shrank to 5.07bln in June (at the seasonally adjusted annual rate), while it had been forecasted that more…

EUR and GBP to test important resistances

By GG Analyst in Reviews 0 Comment

EUR/USD

The euro/dollar remains in the uptrend. Last week the level of resistance moved from 1.3000 to 1.3050. And the resistance of bears is only at 1.3170 now. Technically,  a “flag” is forming. And usually it spills over into continuation of a trend. In our case, should 1.3170 be broken through with confidence, traders will get a buy signal with the approximate target at 1.3570, which is our long-term target. Talks about further growth will be sensible only after these levels are reached. Yet the ability of the single currency to stand firm above 1,36 seems to be more and more doubtful more…

USD is sliding down

By GG Analyst in Reviews 0 Comment

EUR/USD

The single currency was gradually declining on Thursday, but this decline was very small. The pair got support at 1.3070. And today during the Asian session EURUSD rose to 1.3140. The pressure on the dollar, about which we’ve been talking since the release of FOMC’s meeting minutes, is beginning to tell. We still stick to the opinion  that the US currency will be getting weaker in the coming days and weeks. To some extent it is connected with the fact that other countries show more and more improvement. In regard to the USA, optimism is restrained because of the disappointing reporting more…