FX.co ★ EUR/USD analysis for February 17 2021 - First downside target at 1.2085 has been reached. Potetntial for new downside wave towards 1.1955

Prior -4.1%

• Market index 892.6 vs 904.4 prior
• Purchase index 299.5 vs 318.8 prior
• Refinancing index 4,337.0 vs 4,549.2 prior
• 30-year mortgage rate 2.98% vs 2.96%

The key drop comes from yet another dip in purchasing activity with refinancing activity also seen declining once again in the past week. That points to some moderation in housing market activity though it will be interesting to see how that develops as rates are likely to climb further in the coming weeks.

Further Development

Analyzing the current trading chart of EUR/USD, I found EUR reached my first downside target from yesterday at the price of 1,2085 but that there is still strong downside moementum and potential for lower targets.

Key Levels:

Resistance: 1,2085

Support levels: ,2022 and 1,1955.