Euro hovers around weekly high

The Euro was able to buck the trend in yesterday’s trading session, moving higher despite better than expected economic data from the US which may indicate the rally in the greenback, which started in May of this year may be beginning to lose steam

Quarterly US GDP figures hit the market at a better than expected 2.3% against analysts’ expectations for a figure of 2.1% while the headline Conference Board Consumer Confidence index also beat expectations coming in at 115.8 in December, up from 109.5 last month, reaching its highest levels since July.

Looking ahead today, it is a relatively quiet day on the economic calendar from Europe so all eyes will be on the US session where a raft of economic data will be released which will dictate the direction of the EUR/USD currency pair.

To start of with, we will see the release the November Personal Consumption Expenditures (PCE) Price Index data, the Fed's preferred gauge of inflation, alongside the monthly Personal Income and Personal Spending figures. The weekly Initial Jobless Claims, November New Home Sales and the University of Michigan's Consumer Sentiment Index for December will also hit the market to round off the day.

Looking on the chart, we can see that the EUR/USD currency pair has finally broken a key technical level which is the bottom line of the downward trend channel which began sometime in June.

In todays trading session it is now using this line as a support level and has once again faced stiff resistance at the $1.1342 mark and the news out of the US today will dictate if the currency pair can also overcome this critical resistance level.