Technical Analysis EUR/USD for November 17, 2015

The EUR/USD moved lower on Monday despite an uptick in Eurozone inflation.  The number were relatively subdued and with Draghi last week warning that there are weakening signs of core inflation, the currency pair traded on the defensive. The exchange rate is poised to test the November lows at 1.0673, while resistance is seen near the 10-day moving average at 1.0797.  Momentum remains negative with the MACD (moving average convergence divergence) index printing in the red with a downward sloping trajectory.  Additional support is seen near the March low at 1.0480.

Eurozone HICP inflation revised up to 0.1% year over year from 0.0% year over year reported initially and versus -0.1% year over year in September. Core inflation was revised up to 1.1% year over year from 1.0% year over year, with prices excluding energy rising 1.2% year over year in October, versus 1.0% year over year in the previous month.