EUR/USD today is showing a very intensive bearish rally dropping to 1.3700 level after failing to take over the 1.3850 resistance mark. The major reason for such market behavior can be seen in a technical correction which should have came after the overbought condition in EUR/USD reaches its peak. Personally I thought that this correction will come a bit later letting the EUR/USD to get higher before falling down, but market is market — U.S. dollar is rallying despite of bad macroeconomic statistics which came out today.
Existing home sales — a major indicator of the U.S. economy since the crisis in the real estate sector began earlier this year — came out at 5.75 million units — below the expected 5.90 million and below the previous number of 5.98 million in May.
Crude oil inventories in the week ending on July 20 declined by 1.1 million barrels, while the motor gasoline inventories rose by 0.8 million barrels and distillate fuel inventories increased by 1.5 million barrels.