The dollar moved lower versus the Loonie but showed strength against most major currencies. Treasury yields edged higher but whipsawed in the wake of the Fed Decision. Despite the move up in Treasury yields, riskier assets like stocks outperformed. The upward movement in Treasury yields has weighed on refinancing. Despite the lack of new mortgages, New Home Sales increased nearly 12%, according to the U.S. Commerce Department.
The USD/CAD eased on Wednesday but remained caught between key support and resistance. Support is seen near the 10-day moving average on near 1.2553. Resistance is seen near the 50-day moving average at 1.2704. Short-term momentum has turned positive as the fast stochastic generated a crossover buy signal. Medium-term momentum has turned positive as the MACD (moving average convergence divergence) index generated a crossover buy signal. This scenario occurs as the MACD line (the 12-day moving average minus the 26-day moving average) crosses above the MACD signal line (the 9-day moving average of the MACD line). The MACD histogram is printing in positive territory with an upward sloping trajectory which points to a higher exchange rate.
New Home Sales Rise
According to the Commerce Department, new home sales increased 11.9% to an annual rate of 811,000 units last month, the highest level since March. November’s sales pace was revised down to 725,000 units from the previously reported 744,000 units. Economists had forecast new home sales, which account for more than 10% of U.S. home sales, rising to a rate of 760,000 units.
This article was originally posted on FX Empire