EUR/USD Prediction for October 25, 2016
The EUR/USD edged slightly lower following the stronger than expected U.S. manufacturing PMI flash, which was offset by a better than expected EU PMI manufacturing report. Resistance on the currency pair is seen near resent support now resistance at 1.0951, and then the 10-day moving average at 1.0972. Support is seen near the February lows at 1.0820. The RSI (relative strength index) is printing a reading of 27, which is below the oversold trigger level of 30 and could foreshadow a correction in the exchange rate.
U.S. flash Markit PMI jumped 1.7 points to 53.2 in October, after falling 0.5 points to 51.5 in September from 52.0 in August. This is the highest since last October’s 54.1 print. New orders rose to 54.7 from 51.1, though the employment component declined. The better than expected headline is consistent with expectations for a pickup in activity in Q4.
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