EUR/USD Prediction for September 29, 2016

The EUR/USD consolidated on Wednesday and continues to trade in a relatively tight range.  Traders continue to wait for action for the ECB to drive the exchange rate which is hovering near support at the 10-day moving average at 1.1203.  Resistance is seen near the September highs near 1.1327.  Momentum is neutral with the MACD (moving average convergence divergence) index printing near the zero index level with a flat trajectory.

In defending the ECB’s policies to German parliamentarians Draghi said after a visit to the lower house that other policies must contribute much more decisively while the ECB must allow its measures to develop for full impact. The central bank president stressed that the ECB doesn’t see overheating in the Eurozone or German economies although he admitted that low rates for long may racy asset-overvaluation risk and that ECB policy is not the main factor in low bank profitability.