25.07.201701:45 Forex Analysis & Reviews: The US Dollar Pauses

Political intrigues were at the center of attention of traders today, as important fundamental data was not released.

Now all the attention of investors is focused on investigating the connection of U.S. President Donald Trump with the Russian authorities. Today, Jared Kushner, a senior adviser to the U.S. president, provided details of his contacts with Russian officials and businessmen. Many fear that the current political tensions that have surfaced after the failure of the reform of the health care law will undermine the plans of the Trump administration to stimulate the economic growth.

Weak fundamental data published by the housing market did not allow the US dollar to strengthen its position against the euro.

According to the report of the National Association of Realtors, sales in the secondary housing market in the US fell in June. Sales fell at an annual rate of 1.8% to 5.52 million homes. Economists predicted that sales will drop only by 1.1%, to 5.56 million houses year-on-year. In comparison with the same period of the previous year, sales in June increased by 0.7%.

As noted in the report, sales declined due to limited stocks, which would entail a price increase, which in turn could make the purchase of a house even more inaccessible.

As for the technical picture, the EURUSD pair did not go beyond the trend, in which it was still at during the beginning of the European session on Monday. While there is no signal to reverse the upward trend, it is best to look for new long positions with the correction of the trading instrument in the support area 1.1610 and 1.1560.

The return of the European currency to the large resistance level 1.1675, located in the region of monthly highs, will indicate the return of demand for risky assets and the continuation of the upward trend with the update to 1.1710 and 1.1760.

In the second half of the day also came data on sales in the wholesale trade of Canada, which rose in May this year, significantly exceeding the forecasts of economists.

According to the National Bureau of Statistics of Canada, sales in wholesale trade grew by 0.9% compared to the previous month and totalled to 61.61 billion Canadian dollars. Economists had expected sales to increase by 0.5%. In comparison with the same period of the previous year, sales increased by 10.1%.

Such data provided good support to the Canadian dollar, which rose against the US dollar. At the moment, USDCAD pair updates monthly lows, but the further downward trend is limited by the large support of 1.248, it will not be possible to break below it at the first try. The main goal of the sellers is to update the lows to around 1.2440-30. Only from there can traders count on the formation of the first more or less large upward correction in the trading instrument.