EUR/USD Prediction for February 24, 2017

The EUR/USD edged higher on Thursday, despite mixed data which saw an uptick in German GDP and a decline in German confidence. The exchange rate came off its highs following comments from Dallas Fed Kaplan who stated that the Fed should move sooner rather than later. Support is seen near yesterday’s lows at 1.0493, while resistance is seen near the 10-day moving average at 1.0598.  Momentum on the currency pair remains negative as the MACD (moving average convergence divergence) index prints in the red with a downward sloping trajectory which points to lower prices.

The Fed’s Kaplan Believes Rates Will Move Sooner Rather than Later

Dallas Fed’s Kaplan reiterated the Fed should move sooner rather than later, suggesting he might support a tightening next month if the jobs data cooperates. He’s on the hawkish end of the voting spectrum so it may not take much for him to call for a hike. But, he also said that accommodation can be removed gradually and patiently.