Housing starts and building permits are lower than expectations
The US housing data today came out weaker than expectations and the dollar retreats a bit, but not much. The DOE inventory data and the FOMC meeting minutes are to come but not until 10:30 AM ET/1430 GMT and 2 PM ET/1800 GMT respectively.
The USDJPY stalled near the 38.2% of the move down from the July high at 110.92 (the high reached 110.94).
The price is now trading at 110.72. The close from yesterday was 110.66. The 100 bar MA on the 4 hour is at 111.48. Looking at the 5 minute chart below the pair is trading around trend line and 200 bar MA at this area.
The EURUSD is trading off the lows from August 9th at 1.16886 and yesterday at 1.16867. The low today stalled at 1.16906 in the London session. The price is off those lows after the data and trades at 1.1710. Remember the 1.1711 was the swing high from August 2015. The market is unsure of the next move.
Drilling to the 5 minute the price remains below the 100 and 200 bar MAs. Those MAs stalled the snap back rally in the London session (see chart below).
