EUR/USD Prediction for December 6, 2016
The EUR/USD whipsawed following the result of the Italian referendum initially moving lower and then surging back to the 1.08 level. Resistance on the currency pair is seen near the October lows at 1.0850, while support is seen near the 10-day moving average at 1.0617. The currency pair generated an outside day which is important at support levels. This is a lower low and a higher high with a higher close which reflects a reversal.
Momentum has turned positive as the MACD (moving average convergence divergence) index recently generated a crossover 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. This index is now printing in the black with an upward sloping trajectory which points to higher prices.
Your capital is at risk