EUR/USD Price Prediction for July 26, 2016

The EUR/USD edged higher on Monday following a stronger than expected Ifo report that helped the currency pair fend off a yield differential that continues to favor the greenback.  Support is seen near the June lows at 1.0906, while resistance is near the 10-day moving average at 1.1037.  Momentum has turned negative as the MACD (moving average convergence divergence) index generated a sell signal.  This occurs as the spread (the 12-day moving average minus the 26-day moving average) crosses below the 9-day moving average of the spread.
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German Ifo holds up better than feared, with the overall reading coming in a tad above our forecast, which was already more optimistic than consensus. The expectations index eased to 102.2 from while the current conditions indicator unexpectedly improved and rose to 114.7 from 114.6 in the previous month. This brought the overall index to 108.3, down from 108.7, but versus our median of 107.9 and much higher than consensus of 107.5.