EUR/USD Prediction for August 26, 2016

The EUR/USD moved higher despite hawkish commentary from the Fed’s George.  Prices consolidated near support at the 10-day moving average near 1.1273.  Resistance on the currency pair is seen near the August high at 1.1366. Momentum is neutral as the MACD prints in the black with a declining trajectory which points to consolidation.  Softer than expected Markit PMI services took the steam out of the greenback.

U.S. flash Markit services PMI fell back to 50.9 in August after holding at 51.4 in July and June. It was 56.1 a year ago. The index has hovered in the low 50 region most of the year, and is the lowest reading since sliding to 49.7 in February. The employment component declined to 51.9 from 52.6 and is the weakest print since December 2014.