Technical Analysis EUR/USD for November 1, 2016

The EUR/USD was unchanged after testing lower levels on Monday, as yields in the U.S. started to consolidate.  Support on the currency pair is seen near the 10-day moving average at 1.0927, while resistance is seen near last week’s highs at 1.1040.  The weaker than expected Chicago PMI report help the Euro gain a foothold.  U.S. Chicago PMI dropped 3.6 points to 50.6 in October, worse than expected, after rebounding 2.7 points to 54.2 in September. Yet, this is a 5th consecutive month of expansion registered by the regional index.

Momentum has turned positive as the MACD (moving average convergence divergence) index generated 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.

EUR/USD Technical Analysis Forecast

EUR/USD Fundamental Forecast