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EUR/USD dips further on US data

FXStreet (Edinburgh) - The offered tone around the common currency is quickly gathering traction now, sending EUR/USD to fresh lows in the mid-1.1100s.

EUR/USD weaker on positive US housing data

The greenback is intensifying its upside vs. its G10 peers on Tuesday after US Housing Starts increased to a seasonally adjusted 1.135 million units in April, or 20.2%, the highest level since November 2007. In addition, Building Permits increased 1.143 million or 10.1% during the same period, both prints surpassing previous estimates.

Spot is now challenging 2-week lows in the vicinity of 1.1130 in the wake of the auspicious US releases.

EUR/USD relevant levels

As of writing the pair is down 1.43% at 1.1153 with the next support at 1.1139 (low May 19) ahead of 1.1131 (low May 11) and then 1.1106 (38.2% of 1.0521-1.1468). On the flip side, a break above of 1.1278 (38.2% of 1.1468-1.1160) would expose 1.1289 (10-d MA) and then 1.1328 (high May 19).

EUR/USD rebound to 1.12 likely to attract bears – TDS

The recent San Francisco Fed speech and ECB’s ‘front-loading’ of asset purchases caused the euro to fall against the dollar, and any rebound to 1.12 levels will likely attract sellers, according to FX Strategists at TD Securities.
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US housing starts rose to 7-year high in April

New residential construction or housing starts in the US rose to a seven year high, while building permits, which are proxy of future construction, rose to the highest level since June 2008.
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