EUR/USD Prediction for June 10, 2016

The EUR/USD moved lower on Thursday following comments from ECB President Mario Draghi that put the onus on governments to help stimulate the EU economies. A stronger than expected jobless claims report also buoyed the currency pair.  Support on the exchange rate is seen near the 10-day moving average at 1.1255, while resistance is seen near the May highs at 1.1616.  Momentum remains positive, but the trajectory of the MACD (moving average convergence divergence) index has flattened reflecting consolidation.

U.S. initial jobless claims fell 4k to 264k for the week ended June 4 following an unchanged dip to 268k for the week of May 28. It’s the lowest level since April 23, and leaves the 4-week moving average at 269.5k versus 277k. Continuing claims dropped 77k to 2,095k for the May 28 week after rising 12k to 2,172.