U.S. New Home Sales in August remained near the record low as figures were flat amid economists expectations of a 6.9 percent rise. The data adds further weight onto the U.S. dollar as the outlook for the world's largest economy remains blurry, while the Fed recently held a cautious tone during its FOMC meeting. Going forward, the greenback may extend its decline against all major currencies during the North American trade. Taking a look at the breakdown of the report, home sales in the Midwest extended last month’s decline, plunging 26.1 percent, and were followed by a�10.8 percent fall in home sales in the South. Indeed, the median home price has fallen approximately 1.0 percent from last year. In turn, a weak housing market will add additional weight onto consumer confidence. This disappointing reading trails a better than expected durable goods orders report outside of the headline reading. As of late, the U.S. dollar is down against most major currencies and may continue to push lower against the British pound and the euro in the near term as optimism in those countries continue to their positive momentum. After initially crossing back above the 200-day moving average, the pair looks poised to continue its northern journey, and downward risks looks to be capped by the 1.320. Indeed, the pair is entering overbought territory, however, I do not rule out a period of consolidation before price action advances further. It is also worth noting that our speculative sentiment index now stands at -1.44 and signals for additional gains.

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