According to the report of the National Association of Realtors, pending home sales increased in February to their highest level since June 2013. Sizeable gains in the Midwest and West were offset by smaller declines in the Northeast and South. The pending home sales index,* a forward-looking indicator based on contract signings, rose 3.1 percent to 106.9 in February from a slight downward revision of 103.7 in January. Now, it is 12.0 percent above from 95.4 in February 2014. The index is at its highest level since June 2013 (109.4). It has increased year-over-year for six consecutive months and is above 100 (considered an average level of activity) for 10 consecutive months.
As we expected, the pair gave an upside inverse head and shoulder rallied nicely. We recommended buying in case the price corrected towards 1.2400 or 1.2370. The pair made a low at 1.2410 and changed its direction towards 1.2710. Now, we are in money of 300 pips. We request traders who followed my trade to move their stop loss at 1.2600. Until the price closes above 1.2540, bulls remain in play. The pair prepared a strong support base between 1.2350 and 1.2300 at 200MSMA. Until prices closes above 1.2300, buying on dips still remains in play.
As we expected, the pair gave an upside inverse head and shoulder rallied towards our target.
We have been recommending buying with sl 117.50. The pair made a low at 118.33 facing strong resistance at 50Dsma. At yesterday’s session, we expected another near-term rally in case the price closed above 50Dsma. The very same day, it managed to close above 50Dsma. Today, the pair faced resistance at 20Dsma 120.40 at the Asian session. The price trading pattern is shifted between 120.40 and 119.40. We recommend intraday buying above 120.40 with targets at 120.60, 121.00, and 121.20. A daily close below 117.50 leads to another leg down towards 116.00 and 115.00. Bulls are safe until the price closes above 117.50 100Dema. Trade: Positional buyers, move your trailing stop loss at 119.40. At yesterday’s session, we advised fresh buying above 119.50.
Today, traders eye on consumer confidence data. In case of positive reading, another sharp run is likely to take place in the near term.
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