EUR/USD Prediction for September 28, 2016

The EUR/USD moved lower on Tuesday as the dollar gain traction following a stronger than expected sentiment report.  The currency pair traded off its lows near the 10-day moving average seen near 1.1206.  Resistance is seen near the September highs near 1.1327.  Prices continue to trade in a relatively tight range, with little volatility.  Momentum is neutral with the MACD (moving average convergence divergence) index printing near the zero index level.

U.S. consumer confidence jumped 2.3 points to 104.1 in September after surging 5.1 points to 101.8 in August. This is the highest reading since August 2007. Strength was broad-based. The present situation component paced the headline gain, rising to 128.5 from 125.3. The expectations index improved to 87.8 from 86.1. The labor differential climbed to 6.3 from 4.0, and the 12-month inflation index rose to 5.0% from 4.8%.