Forex Pros – The euro failed to extend recent gains against the U.S. dollar, stalling under a key resistance line of 1.30 on Monday, after weaker-than-expected U.S. housing data. EUR/USD hit 1.2990 during European afternoon trade, a daily high; the pair subsequently consolidated at 1.2970, gaining 0.31%. The pair was likely to find support at 1.2708, the low of July 15 and resistance at 1.3007, last Friday's high. Earlier in the day, the U.S. National Association of Home Builders said its index of builder confidence fell to 14 in July, after declining to 17 in June. Analysts had expected decrease to 16 in July. Commenting on the report, NAHB Chief Economist David Crowe said "The pause in sales following expiration of the home buyer tax credits is turning out to be longer than anticipated due to the sluggish pace of improvement in the rest of the economy". The euro was also up against the pound, with EUR/GBP gaining 0.87% to hit 0.8524. Also Monday, the International Monetary Fund and the European Union withdrew EUR20 billion of financing from Hungary, sending stocks and the forint sliding over 2%. A Hungarian cabinet minister said talks will resume in September.

Source