EUR/USD Prediction for December 8, 2016

The EUR/USD consolidated edging slightly higher as weaker than expected German production data failed to erode the value of the currency pair.  The EUR/USD is forming a bull flag pattern after generating an outside reversal date earlier in the week.  Resistance is seen near the October lows at 1.0850, while support is seen near the 10-day moving average at 1.0653.  Momentum remains positive as the MACD (moving average convergence divergence) index prints in the black after recently generating a crossover buy signal.

German production data came in weaker than expected, with a modest 0.3% month over month rebound from the drop-in September that was revised up to -1.6% month over month from -1.8% month over month reported initially.