The Euro (EUR) inched lower against the US Dollar (USD) on Friday, dragging the price of EUR/USD to less than 1.0600 following the US New Home Sales news release. The technical bias remains bearish because of a lower high in the recent upside rally.

Technical Analysis

As of this writing, the pair is being traded around 1.0575. A support may be seen near 1.0507, the trendline support area as demonstrated in the given below daily chart with brown color. A break and daily closing below the 1.0507 trendline support shall incite renewed selling interest, validating a move towards the 1.0400 support zone which is a psychological number.

On the upside, the pair is expected to face a hurdle near 1.0700, the trendline resistance area ahead of 1.0819, the 50% fib level and then 1.0937, the upper trendline resistance as marked with red color in our chart. The technical bias shall remain bearish as long as the 1.0819 resistance zone is intact.

New Homes Sales Data

New home sales in the U.S. rose less-than-expected last month, official data showed on Friday. In a report, the Census Bureau said that new home sales rose to a seasonally adjusted annual rate of 555K, from 535K in the preceding month whose figure was revised down from 536K. Analysts had expected new home sales to rise to 570K last month.

Trade Idea

Considering the overall technical and fundamental outlook, selling the pair around current level appears to be a good strategy in short to medium term.