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Monday’s releases from the US markets, which showed that US Existing Home Sales went down by 0.2% in July, caused the greenback to be traded at a mixed trend against most of the major currencies. The weak housing figures is raising many doubts and concerns about the health of the world’s largest economy, this lower home values left Americans feeling less wealthy. Investors are waiting for the speech on “Housing and Monetary Policy” by Fed Chairman Ben Bernanke later this Friday, which will probably offer few hints about the future directions of the Fed’s monetary policy. As it seems at the moment, the housing market correction could take longer than expected and that could weigh on expenditure going forward.

It should be noted that the sub-prime market is just 4% of the overall real estate market, and its escalating effect is sometimes overwhelming. This ongoing housing problem makes it very difficult for Americans to tap home equity to finance the spending. A slowdown in hiring and slimmer pay raises might weaken consumer sentiment and purchasing power as overall economy growth slowdown. Sales of second hand houses fell in July for the fifth month in a row, as the figure came in the lowest in almost five years, while the surplus of those homes rose to a 16-year high. The labor market shows signs of weakening. Unemployment rose in July to 4.6 percent from 4.5 percent, which is almost the lowest in six years. And job growth slowed to 92,000 last month from 126,000, down from last year’s average of 189,000 a month. Thos are quit concerning figures with which the US economy must deal at the short run.

As for today, there is no major news releases expected to come from the US today, and the greenback’s movement is floating in a cloud uncertainty. The following two days are packed with major events and should probably shed more light on the Greenback’s future behavior.

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EUR/USD

The pair is now trading around 1.3600 which is the 50% Fibonacci level of the 1.3850/1.3360 move. If a breach up through that level will occur, we should see the pair initiating a further bullish move into the 1.3650 move. The daily chart is supporting the bullish notion, as the slow stochastic floats around 40, which indicates some more room to extend up.

GBP/USD

The cable is floating at the upper levels of the downward channel that is forming on the daily chart. Together with the slow stochastic and RSI which are both at the 50 level, a bearish signal is created with the next target price located 1.9960. The 4 hour chart is showing a slight oversold level which might sustain the move down on the short range.

USD/JPY

The 4 hour chart is showing two consecutive green bars, and the slow stochastic is showing two bullish crosses under the 20 level. The RSI has violently crossed the 20 level from above which strengthens the notion that on the short run a reverse move is imminent. Traders should pay attention to the fact that the dailies are still bearish, and there is still more room to go down on a longer time scale.

USD/CHF

The daily chart is showing that there is great uncertainty in the pair movement, as most of the recent bars in the daily chart are wide doji. This indicates that although there is some price movements, the open and close price are very similar. There was an attempt to break through the 1.1960 levels a gain yesterday, and it failed, which means that the support level is still very strong. The hourlies are showing slight bearish momentum, and in general the trend is unclear.

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