Technical Analysis EUR/USD for December 2, 2015

The EUR/USD popped higher on Tuesday getting a boost from the drop in Eurozone unemployment.  This combined with a decline in German unemployment and a softer than expected U.S. ISM manufacturing report helped the exchange rate climb. Resistance is seen near the 20-day moving average at 1.07, while support is seen near Monday’s lows at 1.0557.  Momentum has turned positive with the MACD (moving average convergence divergence) index recently generating a buy signal.  The RSI moved higher with price action reflecting accelerating positive momentum.

Eurozone October unemployment dropped to 10.7% from 10.8% in the previous month. This is the lowest rate since January 2012, which confirms that the recovery is slowly reaching the labor market. German unemployment rate hit a record low. Seasonally adjusted jobless numbers dropped a further 13K in November, more than expected and bringing the overall rate to a record low of 6.3%, from 6.4% in the previous month.