U.S. Housing Starts Soars – Forex and Indices – Daily Update 19.06.18


Fundamental Overview

U.S. Housing Starts soars to 2007 highs in May.

Daily Forex Technical Analysis: The U.S. Housing Starts surged 1.35 million in May, the highest level in near to 11-years and over the 1.31 million forecasted. Building permits fell to 1.301 million, under the 1.35 million expected by the analysts.

This buoyant data is attended by the housing market sentiment which fell to 68 points in June from the 70 points reported in June. This decrease in the homebuilder’s sentiment is produced mainly by the rising costs in lumber prices.


On the other hand, the 20-City Home Price Index in the US reported by S&P/Case-Shiller in May soared to the record high 208.62 points, the highest level previous to the 2008 financial crisis.


Daily Forex Technical Analysis


Tha pair EURUSD is moving sideways finding to test the May 29th level support at 1.15102, and it looks like the price is making a bottom pattern. For it to place us on the bullish side in EURUSD, we expect the short-term resistance breakout at 1.16445.


The Pound broke down the low of the May 29 (1.32045 level)  losing the 1.32 psychological level. Now we expect that the price will complete the bearish cycle in the area between 1.3109 and 1.2936, from where the price should start to bounce at least to the 1.3298 level.


USDCHF is running bullish to the parity making a flag pattern. Our vision for the Swiss currency is that it could make a new bearish leg with a mid-term target on 0.98 level.


EURCAD is developing an expanding triangle inside an ascending channel; we expect that the cross makes a new high to the 1.555 area before we see more drops to the 1.49 zone.


EURAUD reached the mid-term target zone in the 1.57 area. We foresee that if the cross breaks down the short-term trendline, EURAUD will complete a flag pattern, which should drive to new lower lows, likely to 1.53 area.

DAX 30

DAX 30 is moving laterally in a major degree structure testing the long-term pivot level at 12,652.2. A breakdown of this level could drive the price to test the short-term support at 12,547.6, it could even fall to 12,300 area, from where we expect the start of a new rally.

FTSE 100

FTSE 100 broke down the May-29th low making a new lower low; this makes us foresee that the British index should see a new lower low, probably to the 7,400 area, from where FTSE should build a new bullish connector.