EUR/USD was under pressure as the tension towards the ECB’s meeting, the main event of the upcoming week but certainly took advantage of the greenback’s weakness. Will Draghi drag the euro down or will it bounce like in December? Here is an outlook for the highlights of this week and an updated technical analysis for EUR/USD.

The euro-zone is back to deflation and also core inflation does not look good. Leaks, reports and analysis towards the ECB helped the euro. In the US, figures were good enough at first but the worrying services sector report certainly weighed until the Non-Farm Payrolls report came around: they showed a mixed picture: job gains beat expectations with 242K but wages fell by 0.1%, well below predictions. This triggered choppy trading with a range worth around 120 pips.

Updates:

EUR/USD daily graph with support and resistance lines on it.