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The end of last week has been strongly bearish for the EUR/USD, with heavy losses on Thursday and Friday, and this negative bias continues on Monday, with a further decline in the pair, which marked a recent low of 1.1080, the lowest since nearly a month.
The economic calendar is almost empty this Monday does not offer any particular reasons for the further decline of the EUR/USD unlike last week where the pair had clearly reacts to a rise in the Dollar following a number of economic indicators were better than expected.
It should be noted, however, that the only important statistic of the day, the consumer price index to the production in germany of the month of December, still reported to be below expectations this morning at 8am, which failing to be sufficient to explain the fall of the Euro was no less a negative factor.
From a graphical point of view, it should be noted that the break below the psychological threshold of 1.11 done last week, and confirmed early this morning when a rebound was blocked by this former support turned resistance, is the last bearish signal as of the date.
The next threshold to watch for on the downside is the moving average 100 days, and currently to 1.1060. Further down, we find little support before the psychological threshold key 1.10 and the lowest in the 29 November at 1.0980.
The increase, 1.11 is the first resistance to take into account, but it should be able to see a return of the Euro-Dollar at least above the 200-day moving average currently at 1.1135 to consider the sustainability of the return of the buying pressure.
Finally, it should be noted that although this Monday is pretty quiet from the macroeconomic point of view, several key events are expected later this week, including the ECB meeting on Thursday and the PMI indexes are preliminary for Europe and the United States Friday.
Prior to these key events, it is possible that traders are reluctant to commit in one direction or another, thereby avoiding the breakage significant, simply keep EUR/USD between its moving averages 100 and 200 days (1.1060-1.1135).