EUR/USD Prediction for November 18, 2016

The EUR/USD continued its trend lower and is poised to test a 1-year low near 1.0506.  Resistance is seen near former support now resistance at 1.0850.  Additional resistance is seen near the 10-day moving average at 1.0866.  Momentum 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 RSI (relative strength index) moved lower with price action reflecting accelerating negative momentum. The current reading of 24, is below the oversold trigger level of 30 and could foreshadow a correction.

U.S. initial jobless claims fell 19k to 235k in the week ended November 12, after dropping 11k to an unrevised 254k in the prior week. That’s the lowest since 1973. The BLS said there were no special factors in the data. The 4-week moving average was 253.5k from 260.0k.