EURUSD Weekly Forex Forecast – 1st to 5th Jan 2018

Technical Outlook: The EURUSD ended last week on a high as the currency pair was seen rising to a 3-month high. Price action touched the previous highs formed near 1.20 and the rally marked the completion of the bullish flag pattern that was identified in last week’s commentary. Following the rally to the 1.20 handle, the common currency could be seen consolidating at this level in the short term. Any declines will be limited to the 1.1901 level where price could be seen retesting the previous highs of the bull flag pattern. Alternately, if the bullish momentum continues, the common currency could be seen pushing even higher.

Fundamental Outlook: Economic data from the Eurozone gets into high gear with the new trading week of the month focusing on the economic reports covering the period of December. The data is expected to show how the various economic indicators in the Eurozone have performed during the final month of the year. Data includes the inflation report and the services and manufacturing PMI data from the Eurozone. The week concludes with Friday’s inflation report for the Eurozone. Still, the economic data is unlikely to bring about any major changes to the currency’s performance.

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