EUR/USD Prediction for October 26, 2016

The EUR/USD rebounded from session lows after testing the 1.0850 level.  Resistance is seen near former support at 1.0906, and then the 10-day moving average at 1.0955.  Support is seen near the February lows at 1.0820.  The currency pair grabbed a foothold following a softer than expected U.S. confidence report. The RSI (relative strength index) moved from oversold territory below 30, to above 30, which could foreshadow a correction. Momentum remains negative with the MACD (moving average convergence divergence) index printing in the red with a downward sloping trajectory which points to a lower exchange rate.

The Conference Board reported that U.S. Consumer Confidence Index hit 98.6 in October, down from 104.1 in September. Expectations were for the confidence index to hit 101.5 in October.  Yields eased following the report which help the Euro gain traction.

EUR/USD Fundamental Forecast