Technical Analysis EUR/USD for February 10, 2016

The EUR/USD continued to surge higher on Tuesday as softer than expected U.S. Wholesale Inventories helped treasuries hit fresh 52-week highs. The currency pair is poised to test the October 2015 highs at 1.1495. Support on the exchange rate is seen near the 10-day moving average at 1.1041. Momentum on the currency pair is positive with the MACD (moving average convergence divergence) printing in the black with an upward sloping trajectory which points to a higher exchange rate.

U.S. December wholesale sales were -0.3% slightly worse than expected, while inventories fell 0.1%.This compares to a low for sales of -1.9% in March ’13 and a high of 4.2% in January ’11. The data left the I/S ratio at 1.32, steady from November.Revisions for November had sales revised to -1.3% from -1.0% and inventories were revised to -0.4% from -0.3% originally.