Technical Outlook: EURUSD briefly rallied above 1.0850 but the failure to post gains above this level failed as the single currency fell back to the previous lows below 1.0600. Price action is likely to remain consolidating above 1.0518 in the near term. With the Fed's meeting coming up next week, price action could remain choppy. If 1.0518 support fails, EURUSD could be seen extending declines to 1.0400. However, the likelihood of this happening is unlikely without another attempt to the upside. Given the downtrend in EURUSD, look for EURUSD to rally towards 1.1000 resistance level which makes it ideal to look for short positions targeting 1.0500. Fundamental Outlook: With the ECB president Draghi managing to keep the euro weak despite tapering the QE program, the single currency will be looking to the U.S this coming week. From the eurozone, data is fairly limited with flash manufacturing and services PMI dominating the economic calendar from the eurozone. On Friday, the final inflation figures will also be released. However, all of this is likely to be ignored by the markets with the focus on the U.S. dollar's direction post the FOMC rate hike. Previous EURUSD Weekly Forex Forecast  

EURUSD Weekly Forex Forecast - 12th to 16th Dec 2016 - Bullish