Forecast: How will pending U.S. home sales impact EUR/USD?

ForexNewsNow | Published on October 1, 2010 at 2:51 pm

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Indicator analysis - pending U.S. home salesNEW YORK (Forex News Now) – The National Association of Realtors is set on Monday to publish a key report on pending U.S. home sales in August, in one of the day’s spotlight realtime forex news events.

The association, a U.S. trade group, is expected to say home sales grew 2.6 percent during the month, down from 5.2 percent in July, according to two currency market trading news outlets.

The group is scheduled to release the report at 2:00 P.M., GMT; as such, the data is likely to dominate European afternoon currency trading.

According to EUR USD analysis, faster-than-expected growth in sales could push toward short-term support around Thursday’s low, 1.356.

But should the data show slower-than-expected growth, or even a decline, the currency pair could be lifted toward resistance around the high of March 17, 1.3818.

Of course, FX traders will also scrutinize data on U.S. factory orders, whose release is due to coincide with the report on pending home sales, as well as pay close attention to comments by Federal Reserve Chairman Ben Bernanke, due later in the day.

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