Technical Analysis EUR/USD for 8/21/15

The EUR/USD moved higher on Thursday following a slew of mixed data released in the U.S. on Thursday which led traders to believe that the Fed will be on hold in September.  Currently U.S. Interest rate futures have priced in only a 25% chance of tightening in September.  Prices broke out above trend line resistance and are poised to test the highs in June at 1.1436.  Support on the currency pair is seen near the 10-day moving average at 1.1090.

U.S. leading indicators dropped 0.2% to 123.3 in July, from 123.6 in June. This is the second decline in the index this year, and is only the third monthly slip in the last 19 months. And only 2 components made negative contributions, paced by building permits, with stock prices also lower.