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EUR/USD  continues to point downward on Friday, as the pair trades in the low-1.36 range in the European session.  The pair has now lost about 150 points since the Federal Reserve announced on Wednesday that it will taper QE by $10 billion. US releases were a major disappointment, as Unemployment Claims rose last week. As well, Existing Home Sales and the Philly Manufacturing Index fell short of their estimates. On Friday, German PPI posted another decline,  but German Consumer Climate posted its best reading in six years. Today’s US highlight is Final GDP.

Here is a quick update on the technical situation, indicators, and market sentiment that moves euro/dollar.

EUR/USD Technical

  • EUR/USD  lost ground in the Asian session and consolidated at 1.3627.  The pair  is unchanged  in the  European session.
  • Current range: 1.3615 to 1.3675.

Further levels in both directions:   EUR USD Daily Forecast Dec. 20th

  • Below: 1.3615, 1.3525, 1.3440, 1.34, 1.3320, 1.3240, 1.3175 and  1.31.
  • Above: 1.3675, 1.3710, 1.3800, 1.3832, 1.3940 and 1.4036.
  • 1.3675 is the next resistance line. 1.3710 follows.
  • 1.3615  is  providing weak support.  1.3525 is stronger.

EUR/USD Fundamentals

  • 7:00 German PPI. Exp. 0.0%, Actual  -0.1%.
  • 7:00 GfK German Consumer Climate. Exp. 7.4, Actual 7.6 points.
  • Day 2 – EU Economic Summit.
  • 10:00 Italian Retail Sales. Exp. 0.2%.
  • 13:30 US Final GDP. Exp. 3.6%.
  • 13:30 US Final GDP Price Index. Exp. 2.0%.
  • 15:00  Eurozone Consumer Confidence. Exp. -15 points.

For more events and lines, see the Euro to dollar forecast.

EUR/USD Sentiment