In monthly chart the pair has closed below the support trend line which parallel with line from 1995-2008 highs. EURUSD-0.19% downside potential may be realized towards parity even lower.
This week will be crucial for the outlook of EURUSD. The December ECB meeting, Yellen’s speeches at the Economic Club in Washington and the US Congress, as well as the November US NFP.All eyes will be on the ECB this week, expect further rate cuts from the ECB, as well as an increase in QE-program, this would make EUR even more attractive as a funding currency.
It may prove difficult for Mr. Draghi to exceed already elevated easing expectations hence the EUR may be subject to upside risk.