EUR/USD Prediction for August 30, 2016

The EUR/USD moved lower, during the European trading session but bounced to close nearly unchanged as the dollar gained traction following Fed comments last Friday focusing on a September rate hike.  Traders will now turn their attention to the U.S. payroll report scheduled to be released this Friday.  Expectations are for a 190K increase.

The exchange rate moved through support which is now resistance near the 10-day moving average at 1.1276.  Momentum has turned negative as the MACD (moving average convergence divergence) index generated a sell signal. This occurs as the spread (the 12-day moving average minus the 26-day moving average) crosses below the 9-day moving average of the spread.  The index moved from positive to negative territory confirming the sell signal.  The index is printing in the red with a downward sloping trajectory which points to a lower exchange rate.