Forex Trading: EURUSD between 1.5670 and 1.5690

The EURUSD is hanging between the 1.5670 and 1.5690 in Tokyo trading.  A break over the 1.5700 level would target the 1.5727 area (21 hour moving average). On the downside. the 1.5671 level was the low on Monday April 14th, hence the early support at that level.  Below that level brings the lows from yesterday at 1.5638 and below that 1. 5600 (61.8% of the move up from March 24th. 

The trade in NY was more a dollar strength trade (there was good long term sellers of the EURUSD after the spike from the New Home Sales data).  It also was fueled by EURGBP liquidation again.  On the surface, it should not have happened given the New Home Sales data which was pathetic.  However, perhaps there is expectation that going forward the risks for lower growth will include the EUROZONE more as tight money really starts to hurt.  Watch the 1.5600 area.