EUR/USD Outlook (17 December 2020)

Overall, EUR/USD is trending upwards.

The French flash PMI data released yesterday indicated that the manufacturing sector has recovered from the contractionary level while the services sector improved and is close to the neutral level of 50.0.

• French Flash Service PMI (Actual: 49.2, Forecast: 39.9, Previous: 38.8 revised from 38.0)
  
• French Flash Manufacturing PMI (Actual: 51.1, Forecast: 50.0, Previous: 49.6 revised from 49.1)
  

The German Flash PMI data released yesterday indicated an overall improvement in business activities in Germany.

• German Flash Services PMI (Actual: 47.7, Forecast: 44.1, Previous: 46.0 revised from 46.2)
  
• German Flash Manufacturing PMI (Actual: 58.6, Forecast: 56.4, Previous: 57.8 revised from 57.9)
  

The eurozone flash PMI data released yesterday indicated that business activities have improved.

• Flash Manufacturing PMI (Actual: 55.5, Forecast: 53.0, Previous: 53.8 revised from 53.6)
  
• Flash Services PMI (Actual: 47.3, Forecast: 41.9, Previous: 41.7 revised from 41.3)
  

Currently, EUR/USD is testing the resistance zone of 1.21800 and the next support zone is at 1.19800.
With the ongoing negotiation of the post-Brexit trade deal, look for short-term buying opportunities of EUR/USD if it breaks the resistance zone of 1.21800.