EUR/USD: forecast for December 21-27
EUR/USD failed to settle above 1.1000 and declined to 1.0800. The bears have to break below this level to provoke decline to 1.0730 and 1.0650. Resistance is at 1.0980, 1.1055 and 1.1100. These obstacles look strong.
Economic data from the euro area in the past week were mixed: PMIs came generally in line with forecasts, but German IFO business climate index disappointed raising concerns about the region’s leading economy.
This week we won’t see a lot of news from Europe. Spanish parliamentary elections can create volatility on Monday: the markets will be watching the event as the European Union urging Spain to make new budget cuts in 2016. Then there will be some minor data from Germany on Monday and Tuesday, while the second half of the week will be devoted to Christmas holidays.