EUR/USD Weekly Outlook

EUR/USD was one of the most traded instruments for the past week. 1.0814 to 1.1247 and a close of 1.1156 is volatility we do not see every week.

We can conclude several things from last week's EUR/USD move:

Euro bulls are trying to sustain the momentum since the beginning of December with their latest strong move on Wednesday and Thursday.
Dollar bulls are getting excited about the latest positive US data announced on Friday and gave a good push to the downside.

Technically, the EUR/USD is not yet ready to end the downfall. Although we are a bit above the downtrend channel, the US dollar has not yet given up.

Last high (1.1247) remains the first resistance level, while last low (1.1108) remains the first support level.

Fundamentally, next week we do not have any high impact news until Friday when we get the German and the Euro-zone GDP and also the US Advance Retail Sales.

Charts: EUR/USD W1, EUR/USD D1