EIA crude oil stocks fell by -0.964M in the week ending at Dec-14, more than the expected -0.900M. The US housing starts eased from 0.888M to 0.861M in November, coming below the 0.873M consensus. Building Permits rose more than the expected 0.875M, from 0.868M to 0.899M. Mortgage Applications, by MBA, contracted -12.3% in the week ending at Dec-14.
"The higher low in July 2012 (compared to July 2010) and the recent new high above the strong resistance at 1.3172 suggest an improvement of the underlying trend. However, we still expect a phase of weakness in the next few weeks given the general overbought conditions", wrote MIG Bank analyst Bijoy Kar, pointing to strong resistance at 1.3487 (24/02/2012 high).