US Existing Home Sales

January 22, 2013

US Existing Home Sales

US Existing Home Sales is expected to remain unchanged from the previous month. Here’s the forecast:

10:00am Existing Home Sales Forecast 5.10M Previous 5.04M
DEVIATION: 0.4M / 400K (BUY USD 5.50M / SELL USD 4.70M)

Definition:“Measures the annualized number of existing residential buildings that were sold during the previous month. A rising trend has a positive effect on the nation’s currency because large purchases tend to be made by consumers that are optimistic and confident in their financial position. The sale of a home also triggers commissions for real estate agents, and often home owners will purchase goods such as appliances and furniture shortly after purchasing a home. Traders watch this report closely as it’s the month’s first demand-side housing indicator to be released.”

The Trade PlanBecause the Housing sector is one of the most foundamental components of the U.S. economy, this release will certainly cause some volatility in the market, especially if our tradable figures (+/- 400K) were hit. With the focus of world on the status of U.S. housing sector, this release may bring about a strong sentiment of risk appetite/aversion if our BUY/SELL trigger is hit…

If our buy tradable deviation is hit, or 5.50M figure is released, we should look to BUY USD after the release. If our sell tradable deviation is hit, or 4.70M figure is released, we should look to SELL USD.

Recommended Pairs : EURUSD.

EUR/USD - Euro / US Dollar

Resistances : Weekly 1.343 ; Daily 1.34 ; Hourly 1.337

Supports : Weekly 1.325 ; Daily 1.327 ; Hourly 1.333

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