The European currency has been strengthening since mid October and reached its two-month high.
Today, the US releases statistics for the number of New Home Sales, which is an important measure of housing market conditions. A growing number means the stimulation of related sectors of industry, services and the labor market that, therefore, strengthens the USD. However, this time, a decline by 0.4% is expected. Dallas Fed Manufacturing Business Index is due today as well.
Support and resistance
A strong is 0.0% Fibonacci, near which there is the lower MA of (1.0995). Resistance levels are 1.1056 and 1.1114 (23.6% Fibonacci). histogram is in the negative zone, its volumes are falling.
Long positions can be opened after the breakout of the level of 1.1056 with the target at 1.1110 and stop-loss at 1.1020.
Short positions can be opened after the breakdown of the level of 1.0995 with the target at 1.0900 and stop-loss at 1.1025.