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.

Omkar Godbole FXStreet Contributor

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

EUR/USD

Overview
Today last price	1.1082
Today Daily Change	-0.0009
Today Daily Change %	-0.08
Today daily open	1.1091

Trends
Daily SMA20	1.1093
Daily SMA50	1.11
Daily SMA100	1.1072
Daily SMA200	1.1128

Levels
Previous Daily High	1.1092
Previous Daily Low	1.1017
Previous Weekly High	1.1092
Previous Weekly Low	1.0992
Previous Monthly High	1.1225
Previous Monthly Low	1.0992
Daily Fibonacci 38.2%	1.1063
Daily Fibonacci 61.8%	1.1046
Daily Pivot Point S1	1.1041
Daily Pivot Point S2	1.0992
Daily Pivot Point S3	1.0966
Daily Pivot Point R1	1.1116
Daily Pivot Point R2	1.1142
Daily Pivot Point R3	1.1191

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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