EUR/USD breaks down further
A weakening in the US housing market, according to Monday’s release of the US existing home sales data which came in at 4.93m (prev. 5.25m), wasn’t enough to stem EUR/USD weakness and has continued to edge lower.
Ahead of the London open, however, EUR/USD was up 0.06%, trading at $1.2235 and retesting a previous area of resistance at $1.2239. This could turn into support if a close is seen below this level.
Further short-term downside in EUR/USD could be realised should expectations be met for a rebound to 1.1% in US core durable goods orders data, scheduled for release at 13:30 (London time).
Tuesday’s area of support/resistance is seen at $1.2239, which if held could then see a further move lower to $1.2176.