EUR/USD & New Home Sales: Bullish potential remains alive

Following a very quiet Monday in terms of the economic calendar, today we’ll have the New Home Sales in the United States at 14:00 GMT, where the analysts are expecting a slight decline from 592K to 575K. This macro data is classified as a medium-impact catalyst for US Dollar and eventually we may see some volatile movements on the greenback, ahead of Yellen’s speech at Jackson Hole Symposium due this week.

The technical picture for EUR/USD at H4 chart is showing a bullish trend line channel’s formation, helping to boost the pair above the 200 SMA. The next resistance is placed at the 1.1347 level, where a breakout should push it to test the 1.1406 level, in case that the New Home Sales came worst-than-expected. By another hand, if the EUR/UD does a pullback at the current stage, then the next support is located at the 1.1240 level.