Technical Analysis EUR/USD for 7/24/15

The EUR/USD moved higher but experienced a volatile session following a stronger than expected jobless claims report that showed that claims dropped by 26K to the lowest levels seen since 1973. The increase buoyed the dollar over the short term, dropping the currency pair to the lows of the session at 1.0921, but positive momentum pushed the currency pair higher closing the session near the 20-day moving average at 1.1019.

Support is now seen near the 10-day moving average at 1.0946, and then again the weekly lows at 1.0865. Additional resistance is seen near a downward sloping trend line that connects the highs in June to the highs in July at 1.0895.  Momentum on the currency pair has turned positive with the MACD (moving average convergence divergence) index generating a buy signal.  This occurs as the spread (the 12-day moving average minus the 26-day moving average) crosses above the 9-day moving average of the spread.  The index moved from negative to positive territory confirming the buy signal.