EUR/USD Prediction for October 21, 2016

The EUR/USD moved lower on Thursday following the dovish tone of the ECB meeting where Draghi intimated that an extension of the current program could be in the cards at the December policy meeting. Resistance on the currency pair is seen near the 10-day moving average at 1.1032, while support is seen near the October low at 1.0950.

Momentum is negative as the MACD (moving average convergence divergence) index prints in the red with a downward sloping trajectory which points to lower prices.  The RSI (relative strength index) which is a momentum oscillator that measures overbought and oversold levels is testing support near the 31 level.  A break would signal accelerating negative momentum.  Readings below 30 are considered oversold, which could foreshadow a correction in the exchange rate.