EUR/USD Prediction for November 24, 2016

The EUR/USD moved lower bouncing off the low near 1.0525, just above support near the 1-year lows at 1.0506.  Resistance on the currency pair is seen near the 10-day moving average at 1.0695. Wednesday’s stronger than expected Durable Goods orders pushed U.S. yields higher, making the dollar more attractive as it pushed the interest rate differential in favor of the greenback.  The RSI (relative strength index) moved lower with price action, but the current print of 25, is below the oversold trigger level of 30 and could foreshadow a correction.

U.S. durable goods orders surged 4.8% in October following a 0.4% September gain which was revised from -0.1%. This compares to expectations of a 1% gain. The 0.3% August gain was bumped down to 0.2%. Transportation orders jumped 12.0% versus a prior 0.7% gain which was revised from -0.8%.