EUR/USD muted around 1.0450 after disappointing US housing starts

The EUR/USD pair had a muted reaction to disappointing US housing market data and has held on to its tepid recovery gains near mid-1.0400s.

Today’s US housing starts data failed to provide any impetus for the major. In fact, US housing starts tumbled 18.7% to a seasonally adjusted annual rate of 1.09 million, down from October's nine-year high of 1.340 million units (revised higher from 1.323 million reported previously).

disappointing housing starts data pointed to choppy recovery in the US housing market but did little to change short-term bullish outlook for the US Dollar, which remains closer to nearly 14-year high touched on Thursday in the aftermath of hawkish Fed statement.

Technical levels to watch

Immediate downside support remains near 1.0400 handle below which the pair is likely to drift back towards Thursday's multi-year lows support near 1.0365 region before eventually dropping to 2003 yearly lows support near 1.0335 area. On the upside, 1.0465-70 now becomes immediate strong resistance, which if conquered should trigger a fresh bout of short-covering towards 1.0500 psychological mark en-route 1.0530-35 horizontal resistance.