Technical Analysis EUR/USD for 8/31/15

The EUR/USD moved lower on Friday following weaker than expected inflation data released in Europe. German state inflation numbers weaker than expected, with headline rates in Saxony and Brandenburg falling back into negative territory and CPI in Rhineland Palatinate and Saarland also down, while annual rates remained steady in NRW, Hesse and Bavaria.

The currency pair found support near the 20-day moving average at 1.1140.  Resistance is seen near the recent highs at 1.17.  Momentum remains positive by the trajectory of the MACD is negative and poised to generate a sell signal. The RSI moved lower with price action reflecting accelerating negative momentum while printing a reading of 51, which is in the middle of the neutral range.