EUR/USD Prediction for January 18, 2017

The EUR/USD surged following an interview with Donald Trump by the WSJ were the President Elect relayed his displeasure with the recent strength of the U.S. dollar. He went on to say that he though the Chinese were holding their currency down which was why the greenback was elevated. A stronger than expected German ZEW survey also help buoy the currency pair.

The currency pair hit fresh 1-month highs and are poised to test the December highs at 1.0873.  Support on the exchange rate is seen near the 10-day moving average at 1.0591.  The relative strength index(RSI) moved higher with price action breaking out to fresh 3-month highs reflecting accelerating positive momentum which points to a higher exchange rate for the EUR/USD.