Housing, HOUSING!

And that concludes our week dear reader as we head off to the long weekend and the official Memorial Day kick start to the summer; we depart the week with more weakness in the Housing sector. The U.S. session revealed that sales of previously owned homes fell in April though less than expectations but they are still falling and inventories of unsold properties set yet another record high, proving that the problem is far from over in the US economy.

The single currency now is ending the week strongly bullish against the dollar, while now the euro is attempting to build a higher base to continue the new initiated upside wave 1.5690s -1.5670s is going to be the strong demand point for now. While the daily basis heavily saturated with buying orders the weekly basis is still indicating the upside potential; thought the correction might take place which might take the euro down until 1.5611 as the first level and even if it extend the wave will be valid as long as 1.5585 remains intact.

The pound is creating a new upside wave on the medium term as today's closing if manages to be above 1.9779 at least will indicate the breach of the major descending channel and the beginning of a new wave as still on the weekly basis momentum indicators are reflecting upside potential. On the daily basis the pound is heavily over bought still which on the intraday helped the pound decline after setting the high at 1.9850 which is a strong level for the pound that might take the pound down till strong support levels at 1.9770s which as mentioned above need to close above to indicate the upside reversal.

The USDJPY continued the downside headings to set the low at the strong support level of 103.20s yet on the intraday basis reversal signals have appeared as the pair is excessively oversold affected by ongoing carry trades reversals in the market. On the short though as long as the pair remains trading below 104.20s then the downside current waves is still valid.

Crown Forex