EUR/USD snaps four-week losing streak
- EUR/USD has snapped its longest weekly losing streak in 14 months.
- Comments by ECB's Lane have so far failed to put a bid under the EUR.
- The pair remains trapped in a bearish channel.
EUR/USD eked out 0.61% gains last week, ending a four-week losing streak, which was the longest since November 2018.
Buyers struggle for follow-through
The preceding week's solid gain has so far failed to invite stronger buying pressure. The pair is currently trading at 1.1080, representing a 0.12% drop on the day, having faced rejection at 1.1095 during the Asian trading hours.
European Central Bank's (ECB) chief economist Philip Lane said on Sunday that there cannot be a permanent disconnect between labor costs and prices and the rising labor costs will eventually reignite inflation. Lane added further that the central bank is on track toward its 2% inflation goal.
Even so, the single currency is struggling to extend Friday's 0.58% rise.
Downward trajectory intact
The pair is still trapped in a bearish channel as represented by the trendlines connecting Dec. 31 and Jan. 16 highs and Oct. 1 and Jan. 28 lows.
A channel breakout is needed to confirm a bullish reversal and expose the Jan. 16 high of 1.1173.
The breakout will likely remain elusive if the US ISM Manufacturing PMI (Jan), due at 14:45 GMT, betters estimates by a big margin. The pair may also take cues from the final German and Eurozone PMI numbers for January and speech by ECB's De Guindos and German Bundesbank's Weidmann.
Technical levels
Author
Omkar Godbole
FXStreet Contributor
Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.
