Forex: EUR/USD tumbles on NY opening

FXstreet.com (Barcelona) - The EURUSD was finding resistance at 1.3125/30 since very early in the day, but was able to print a high at 1.3137 ahead of the release of the US housing starts. Then, the pair dropped across the board as it still is as investors take profit and look to test 1.3100 as support on the New York opening.

US housing starts improved from 0.758M to 0.872M in September, more than the 0.770M expected. Building Permits were also a positive surprise by rising from 0.803M to 0.894M (consensus of 0.810M).

The economic calendar is not quite relevant today, but the EU Summit tomorrow is expected to bring news regarding Spain and some kind of bailout or emergency credit line. Also highly eyed will be China data coming in during Thursday's Asian session: China Q3 GDP, retail sales, industrial production and house price index.

"Short term the main risk for the up move in EUR-USD is that Spain might turn out to be more stubborn tomorrow than many market participants seem to be expecting at present", wrote Commerzbank analyst Carolin Hecht, considering the lower end in EUR-USD to be the more vulnerable one, with downside targets at 1.3000 and 1.2965.