EUR/USD Prediction for October 24, 2016

The EUR/USD move lower on Friday pushing through support near the June lows which has turned into resistance near 1.0950. Additional resistance is seen near the 10-day moving average at 1.0998.  The yield differential continues to move in the greenback’s favor as the 10-year U.S. yield moves higher.

The RSI (relative strength index) broke through support levels near 31, which reflects accelerating negative momentum, which points to a lower exchange rate.  The current reading of 27 is below the oversold trigger level of 30 and could foreshadow a correction.  Momentum as reflected by the MACD (moving average convergence divergence) remains negative as index prints in the red with a downward sloping trajectory which points to a lower exchange rate.