Better US housing starts sees EUR/USD dip

Unable to sustain gains through $1.3620, the euro has made a trip below $1.36. Price action is hemmed in by the 50- and 100-day moving averages. 

Housing starts in the US came in a little higher-than-expected. Given how pivotal this is to the US economy, we have seen the dollar nudge a little higher.

The unverified and unsubstantiated rumours of a German sovereign debt downgrade have also put a little pressure on the single currency.

The lows of this month at 1.3550 should be watched, as any break below the 100DMA will target this area. Level 1.3520 is most likely to be the next support to the downside.

On the upside, any moves back through 1.3620 (50DMA) could see $1.37 eyed.

Spot FX EUR/USD chart

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