Technical Analysis EUR/USD for November 23, 2015

The EUR/USD was unchanged on Monday after pushing through the 1.06 handle for the first time since April.  The exchange rate began to gain traction following a stronger than expected PMI report. Yields in the U.S. and Europe moved lower, but the yield differential moved in favor of European yields.  The EUR/USD has support at Monday’s lows at 1.0590 and then the April low of 1.0520 and the March low of 1.0480.  Resistance is seen near the 10f-day moving average at 1.0708.  Momentum has flattened and although the MACD is negative the trajectory of flat pointing to consolidation.  The RSI is print a reading of 31, just above the oversold trigger level of 30.

Eurozone PMIs suggest economic expansion accelerated in November, with the Eurozone composite reading rising to 54.4 from 53.9, more than expected and reflecting improvements in both the manufacturing sector and the services sector.