euro slips on growth news

With US Existing Home Sales at 6.89 Mn (Previous:6.82 Mn), and New Home Sales at 1431K (Previous:1275K) reported to have grown at their fastest rate in the last 11 years – there are no longer any doubts that US growth rate is sustained and that there is no slowing down.
The market completely shrugged off a drop of 5.3 points in Consumer Confidence and the US dollar rally against major crosses took up once again.
But consumer confidence is still a key area of concern as this is the third consecutive drop in the numbers.
With interest rate differentials of USD and the euro widening, the market is taking further bullish clue on dollar. Durable goods orders expected today may put in some pressure on dollar exchange rates.

Outlook for the day

EUR/USD - With a weaker bias in Euro on positive US data yesterday, it is expected to move in the range of 1.2940-1.3020, testing strong support at 1.2940.
GBP/USD - With break out of psychological level of 1.9100, cable is expected to test support at 1.9010, 1.9110 being the resistance.
USD / JPY - Yen, losing ground against dollar on strong data from US, is expected to move in 105.75 – 106.80 range.