EUR/USD Prediction for December 7, 2016

EUR/USD retraced some of Monday gains, following an in-line print on Eurozone GDP.  Support on the currency pair is seen near the 10-day moving average at 1.0631, while resistance is seen near Monday’s highs at 1.0785.  Additional resistance is seen near the October low at 1.0850.  Momentum remains positive as the MACD (moving average convergence divergence) index prints in the black with an upward sloping trajectory which points to higher prices.

Eurozone Q3 GDP confirmed at 0.3% quarter over quarter, as expected, although the annual rate was revised slightly higher to 1.7%. The breakdown, which was released for the first time, showed consumption underpinning the quarterly growth rate, with household consumption contributing 0.2% points to the quarterly growth rate and government consumption 0.1% points.

EUR/USD Daily Fundamental Forecast

EUR/USD Technical Analysis