EUR/USD Price Prediction for October 27, 2016

The EUR/USD moved higher but was unable to break through resistance near the 10-day moving average at 1.0944.  Stronger U.S yields continue to generate headwinds for the currency pair.  Wednesday’s weaker than expected new home sales report initially gave a boost to the currency pair.  Support is seen near the February low at 1.0822.  The RSI (relative strength index) is recovering from oversold territory and printing a reading of 32, which is on the lower end of the neutral range.

New home sales increased 3.1% per the commerce department to an annual rate of 593,000 units last month.Economists had forecast single-family home sales to fall to an annual rate of 600,000 units last month.  The 10-year U.S. yield moved higher despite the housing data, moving up to 1.79%.

EUR/USD Fundamental Forecast