Technical Outlook: EURUSD posted strong gains last week closing at 1.2196. Price action suggests further upside gains in the currency pair. However, a near term dip towards the previously established resistance level at 1.2070 could be seen as a correction. Establishing support at this level could signal further renewed buying in the currency pair targeting the current highs near 1.2196 with further gains likely to come. The downside risks to this view is the failure of the support at 1.2070. A decline below this level could indicate a stronger than expected correction in the EURUSD. Fundamental Outlook: The quiet pace of economic data from the Eurozone continues this week as well. Most of the economic details cover the second-tier data. However, the European Statistics agency, Eurostat will be releasing the final inflation figures for the Eurozone this week. Flash estimates released previously showed that headline consumer prices rose at a slower pace of just 1.4% during the month of December on an annual basis. This was weaker than the 1.5% increase seen in November. Core inflation rate also slowed to 0.9%. It was the same pace of increase registered in the previous month. The inflation data is unlikely to influence the markets much although the sentiment could be hit in the short term. Previous EURUSD Weekly Forex Forecast

EURUSD Weekly Forex Forecast - 15th to 19th Jan 2018