EUR/USD Prediction for February 27, 2017

The EUR/USD attempted to move higher for a second consecutive trading session after finding a bottom on Wednesday, but was unable to take out resistance near a down. Downward sloping trend line that comes in near 1.0620.  Support is seen near the weekly lows at 1.0492. Momentum is neutral as the MACD (moving average convergence divergence) index prints in the red with a flat trajectory that reflects consolidation. The stronger than expected new home sales helped the dollar gain traction.

New Home Sales Bounced in January

U.S. new home sales bounced 3.7% to 555k in January, following the 7.0% December drop to 535k, while November’s 598k pace was nudged down to 575k, for a two-month net revision of -27k. Regionally, sales were higher in 3 of the 4 areas, with only the West posting a decline, likely on poor weather. Inventories showed a 5.7 months’ supply of homes, unchanged from December’s print.