EUR/USD Prediction for May 30, 2016

The EUR/USD edged lower ahead of the Fed Chair’s speech and question and answer session at Harvard.  Most of the topics veered away from monetary policy but she did say that a rate hike would likely be appropriate in the coming months.  Yellen speeks again on Jun 6, which will likely be more focused on interest rate policy.  Traders seemed to ignore the softer than expected Michigan sentiment index.

The currency pair tested support near the 200-day moving average at 1.1098, while resistance on the exchange rate is seen near the 10-day moving average at 1.1211.  Momentum remains negative with the MACD (moving average convergence divergence) index prints in the red with a  downward sloping trajectory which points to lower prices.  The relative strength index (RSI) stabilized at 37, which is on th elower end of the neutral range and above the ovesold trigger level of 30.  The RSI might have bottomed near support at 32.