Currency Prediction for the EUR/USD for May 5, 2016

The EUR/USD consolidated generating a doji day, following a softer than expected EU PMI Services report.  Support is seen near the 10-day moving average at 1.1371.  Resistance is seen near the May highs at 1.1616.  Momentum remains positive as the MACD (moving average convergence divergence) index prints in the black with an upward sloping trajectory which points to higher prices.

Eurozone services PMI revised down to 53.1 from 53.2 reported initially and versus 53.1 in March. The composite reading was confirmed at 53.0, unchanged from the preliminary number, but down from 53.1 in March. The Eurozone economy continues, thanks to strong growth in peripheral countries, which is helping to compensate for the weakness at the core. France in particular is falling behind again. The French services PMI was revised down to 50.6 from 50.8 reported initially, and with manufacturing already back in contraction territory, the composite was at just 50.2, pointing to stagnation in overall activity.