EUR/USD: Will Sellers drag prices toward 50-EMA ahead new home sales release?

As the stock markets in Europe continued to rise for the second straight day on Tuesday, US stock index futures on Wall Street rose amid market risk-on sentiment, fuelled by the strong Chinese tech sector.

According to figures released Tuesday, the German economy grew faster than expected in the second quarter. The gross domestic product rose an adjusted 1.6% in the second quarter, compared with its prior estimate of 1.5%.

Nevertheless, the buyers of EURUSD do not appear very eager, as the price action in the hourly time frame is emerging a bearish failure swing pattern.

As buyers could not maintain 1.1750, making a lower high at 1.17460, the pair has reverted to the red zone, battling the swing support of 17.341. The prevailing bearish momentum could result in the price falling towards the 50 EMA at 1.117213. a breach of that level would encourage sellers to extend falling to the next target at 1.17134.

Conversely, buyers ought to push the rate above 1.17460 to continue the upward trend.

In addition, the RSI oscillator is indicating the negative sentiment in the short run, as it continues to move south below 50 levels.

The new home sales data for July will be released on Tuesday. It is estimated that month-over-month new home sales will rise to 700,000 units after falling to a 14-month low in June.

Furthermore, investors are closely watching the situation in Afghanistan, as the G-7 industrial countries will meet virtually on Tuesday afternoon.