by S. Wade Hansen REVIEW: 24 JULY 2008 Worse-than-expected existing home sales numbers shook the fragile confidence that had been building in the U.S. in anticipation of a housing rescue bill from the U.S. Congress. Now investors are wondering if the proposed actions from Congress to help stem the tide of foreclosures is going to be enough to secure the U.S. housing market. This news caused U.S. dollar (USD) bulls to take a second look at whether their excitement was premature, and it appears there was some profit taking today. Unexpectedly low British retail sales numbers and European business sentiment numbers also weakened the British pound (GBP) and the euro (EUR). However, this bad news seems to have been offset by the bad news coming out of the U.S., and both the GBP/USD and the EUR/USD are at potential support levels. PREVIEW: 25 JULY 2008 The U.S. dollar (USD)---as shown by the U.S. Dollar Index---appears to have hit resistance in its upward march this week. At the same time, gold, oil and other commodity prices (all of which have been moving in the opposite direction as the USD lately) appear to have found some support. This tells me that the USD may be ready to give back some of its gains tomorrow. One other factor that may cause the USD to give up some gains tomorrow is the pending New Home Sales announcement. After all, it was a shock from the Existing Homes Sales announcement that hurt the USD today, and that increases the chances there might be more bad housing news tomorrow. Here are the economic announcements you need to keep a close eye on tomorrow: - GBP Gross Domestic Product (GDP) - USD Durable Goods Orders - USD New Home Sales Keep profiting with forex. | 
