EUR/USD Forecast: Bullish momentum weakens after Christmas break

EUR/USD trades in a narrow channel above 1.1750 on Monday.
The technical outlook highlights a loss of bullish momentum.
The economic calendar will not offer any high-impact data releases.

EUR/USD stays in a consolidation phase and moves sideways above 1.1750 early Monday after registering marginal losses on Friday. In the absence of fundamental drivers and key macroeconomic data releases, the pair could have a difficult time finding direction heading into the New Year holiday.

Following the Christmas break, the US Dollar (USD) held its ground but failed to gather recovery momentum as trading volumes remained thin.

On Monday, the Federal Reserve Bank of Dallas’ Texas Manufacturing Survey and November Pending Home Sales data will be featured in the US economic calendar, which are likely to be ignored by market participants. On Tuesday, the minutes of the Federal Reserve’s December policy meeting will be scrutinized by investors but the actual market impact could be hard to see until trading conditions normalize later this week or early next week.