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EUR/USD Prediction for October 25, 2016

By:
David Becker
Updated: Oct 25, 2016, 05:44 UTC

The EUR/USD edged slightly lower following the stronger than expected U.S. manufacturing PMI flash, which was offset by a better than expected EU PMI

EUR/USD Prediction for October 25, 2016

The EUR/USD edged slightly lower following the stronger than expected U.S. manufacturing PMI flash, which was offset by a better than expected EU PMI manufacturing report.  Resistance on the currency pair is seen near resent support now resistance at 1.0951, and then the 10-day moving average at 1.0972. Support is seen near the February lows at 1.0820.  The RSI (relative strength index) is printing a reading of 27, which is below the oversold trigger level of 30 and could foreshadow a correction in the exchange rate.

U.S. flash Markit PMI jumped 1.7 points to 53.2 in October, after falling 0.5 points to 51.5 in September from 52.0 in August. This is the highest since last October’s 54.1 print. New orders rose to 54.7 from 51.1, though the employment component declined. The better than expected headline is consistent with expectations for a pickup in activity in Q4.

About the Author

David Becker focuses his attention on various consulting and portfolio management activities at Fortuity LLC, where he currently provides oversight for a multimillion-dollar portfolio consisting of commodities, debt, equities, real estate, and more.

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