EUR/USD Prediction for January 25, 2017

The EUR/USD moved lower as the dollar gained traction as riskier asset appetite rebounded on Tuesday.  Yields in the U.S. climbed at a rate that was larger than European rates helping the dollar gain a foot hold.  This came despite a softer than expected U.S. existing home sales report. Support on the currency pair is seen near the 10-day moving average at 1.0660.  Resistance is seen near the December highs at 1.0855. Momentum remains positive as the MACD (moving average convergence divergence) index prints in the black with an upward sloping trajectory which points to a higher exchange rate.

Existing homes that are previously owned, which account for the vast majority of U.S. sales, declined 2.8% from November to an annual rate of 5.49 million last month.  Expectations were for a decline of 1.8%. The median sale price rose 4% in December from a year earlier, to $232,200.