EUR/USD Prediction for February 22, 2017

The EUR/USD tumbled down to trend line support following comments from the Fed’s Harker that a rate hike at the March meeting should be left on the table.  The exchange rate fell to support near an upward sloping trend line that comes in near 1.0535. Resistance on the currency pair is seen near the 10-day moving average at 1.0619.  The RSI (relative strength index) broke through support reflecting accelerating negative momentum which points to a lower exchange rate.  Momentum as reflected by the daily MACD is also negative as the index is printing in the red with a downward sloping trajectory which points to lower prices.

French Bond Jitters Erode the Euro

In eur usd news, French bond jitters continue amid Frexit concerns. Bank of France Governor Villeroy, and ECB President Draghi will be watching the latest French market jitters will concern as the French spread over the German benchmark continues to widen, especially at the short end. Le Pen’s rise in the polls and her desire to take France out of the Eurozone has seen French 2-year yields rising by 11.03 basis points over the past three months