Fundamental view:

The Euro went back and forth during the course of the week, as it looks like it is a bit overextended. Furthermore, the United States is very possibly going to have an even bigger stimulus package than previously agreed upon, so that could also lift the Euro.

Europe Consumer Confidence on 21^st Dec and Europe German GfK Consumer Climate on 22^nd Dec created bullish atmosphere for the pair whereas US Final GDP quarterly report & US Richmond Manufacturing Index on 22^nd Dec and US Durable Goods Orders on 23^rd Dec created bearish atmosphere for the pair.

The major economic events deciding the movement of the pair in the next week are Jobseekers Total at Dec 28, US Dallas Fed Manufacturing Index at Dec 28, US S&P/CS HPI Composite-20 y/y at Dec 29, Euro CPI monthly report, US Pending Home Sales monthly report, US EIA Crude Oil Stocks Change at Dec 30, and US Initial Jobless Claims at Dec 31.

EUR/USD Weekly outlook:

Technical View:

Last week’s high was 0.13% lower than the previous week. Maintaining high at 1.2257 and low at 1.2130 showed a movement of 127 pips.

In the upcoming week we expect EUR/USD to show a bearish trend. The currency pair is trading below the 50 Simple Moving Average and the MACD trades to the downside. A solid breakout below 1.2131 may open a clean path towards 1.2067 and may take a way down to 1.2004. Should 1.2259 prove to be unreliable resistance, the EURUSD may raise upwards 1.2322 and 1.2386 respectively. Chart formation of a Symmetrical triangle pattern breakout in H4 chart sets prospects for a bearish trend. Hanging man pattern formation in H4 chart escalates the expectation for a bearish trend.