EUR/USD Prediction for May 17, 2016

The EUR/USD consolidated on Monday as Germany and Switzerland were closed for a holiday.  The exchange rate held above support near an upward sloping trend line that connects the lows in March to the lows in April and comes in near 1.1280.  Resistance is seen near the 10-day moving average at 1.1397. Momentum remains negative with the MACD (moving average convergence divergence) index printing in the red with a downward sloping trajectory which points to lower prices.

The greenback was not effected by U.S. data on Monday. In fact housing data showed very little movement in prices. U.S. NAHB homebuilder sentiment was flat at 58 in May, holding at that relatively firm level for a fourth consecutive month. The current single family sales index was also unchanged at 63 after dipping 2 points to that level in April. The future sales index rose 3 points to 65 after inching up 1 point to 62 last months.