The latest housing data covering new home sales showed a sharp spike.
Data from the Commerce Department revealed that new home sales rose by 7.9% to an annual rate of 764,000.
This was the highest level in twelve years. USD was trading barely above the opening price of the session.
Weak German Economy Weighs on Eurozone Growth
The latest data from the DIW in Germany revealed that the nation’s GDP will remain sluggish in Q1. According to the German think tank, the first-quarter GDP will rise just 0.1%.
This comes on the back of sluggish growth and the increased spread of COVID-19.
EURUSD Enters into a Consolidation
The common currency made gains as it test 1.0897 level. Price action was retreating following the test of this level which is proving to act as resistance.
Therefore, in the short term, we expect EURUSD to remain in the sideways range of 1.0897 and 1.0839. A downside breakout will be imminent on a close below the support level.
Weekly Oil Inventory Builds Up
WTI crude oil prices brushed aside the EIA report. Data from the US Energy Information Administration showed a modest build-up of 500k barrels for the week ending February 21. Despite the build, the EIA said that the overall crude oil inventory levels are still below a five-year average.
WTI Crude Oil Maintains Bearish Outlook
Oil prices remain bearish with prices slipping past the 50.00 level once again. With the Stochastics oscillator staying in the oversold levels, there is a risk of a rebound in the near term.
For the short term, the 50.00 level will likely be tested for resistance. Unless oil prices break past this level, we do not expect to see a shift in the trend to the upside.
Gold Makes a Modest Recovery
The precious metal is paring losses from Tuesday, continuing to remain in favor. More reports of COVID-19 cases are emerging which shows a higher number of victims than those reported from China.
Investor concerns remain high amid such developments.
XAUUSD Consolidating in the Near Term
XAUUSD is stalling in its declines as price action is forming modest support at 1632 level in the near term. If the current bullish trend maintains then we expect to see a modest rebound.
Price action has to rise above the local pivot high of 1650 to maintain some gains. Any gains can be expected only on a strong close above this level.
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