By: Tradehits.com
The EURUSD skyrocketed last week, enjoying the low liquidity of the holidays; and after the stronger-than-expected German business confidence data strengthened investor confidence for the economic recovery in the Euro Zone. Lower than expected Unemployment Claims in the US changed the direction and the pair plunged downwards from yearly highs of 1.3894 to 1.3731, finally closing at 1.3748.
This week, the main events to follow are as follows:
Monday: Pending Home Sales in the US.
Tuesday: The main event will be Consumer Confidence.
Thursday: The first day of the new year, investors will be watching the Manufacturing PMIs in Britain and in the US.
The week will finally end with M3 Money supply in the Euro Zone.
On a technical note, the pair has been on a steady upward trend since early November and is still holding. The 1.36 level has successfully provided support so far but we may witness a break in the near future. The second holiday week, the new year, could be quieter than the Christmas week and might affect the long running direction of the pair; which is lower due to further tapering in the US and ECB policy ease in the Euro Zone.
Support and Resistance Levels:
Resistance 1: 1.3820
Resistance 2: 1.3900
Support 1: 1.3690
Support 2: 1.1.3625
This analysis was provided by TradeHits.