Technical Analysis EUR/USD for November 23, 2015

The EUR/USD moved lower on Friday as the ECB head made it clear to the investment community that inflation the Eurozone needs to rise and he will do what it takes to accomplish this scenario.  A weaker Euro is also on the agenda as the ECB wants greater export gross.  Draghi said “the level of the deposit facility rate can also empower the transmission of” the asset purchase program, “not least by increasing the velocity of circulation of bank reserves”.

The exchange rate dropped and is poised to test the November lows at 1.0630.  The next level of target support is the March lows at 1.0480.  Resistance on the currency pair is seen near the 10-day moving average at 1.0721.  Momentum on the currency pair is poised to tern positive as the recent consolidation has allowed the MACD to move toward the spread.  The trajectory is flat which reflects a period of consolidation.