Let's have a short review: lower than expected German ZEW, Euro touched a new low in the beginning of the week, but gained all and even broke 1.37 barrier. This rally was mainly triggered by the very good flash manufacturing and services PMIs and low US economic data. Nice, but look on this weeks calendar. For the Euro Area there will be a lot of German economic indicators, with the most important on Monday, the Ifo Business Climate. But that is not all, don't forget about the US news. There will be a lot of important economic releases with high impact on the short term evolution of this currency pair, and the most important event, from my opinion will be the FOMC statement, which for sure will trigger some high .
On the 60 minutes chart we can see that the Euro took the lead, and from the technical point of view I would say that after a short retreat back to 1.3640 the price could rally again to retest 1.3700 or why not target 1.3800. But I will try to play this safe and keep my stops tight until the FOMC. If you would like more details for EURUSD next weeks forecast have a look at this article http://investazor.com/2014/01/26/eurusd-forecast-january-27-31/