The Euro-to-US Dollar is in a strong uptrend sparked by greater optimism about the economic outlook from Europe's central bankers, we expect this to continue in the coming week.

The main release for the Dollar is inflation data on Friday, whilst the minutes from the recent European Central Bank meeting could provide an insight into when they may end their stimulus programme; charts are warning of a major resistance ceiling overhead. 

The Dollar has weakened of late although this could change if tax reforms are enacted any time soon. The Euro will take its cue in the week ahead from politics and economic data.

Politics is set to dominate as Angela Merkel tries to form a coalition government in Germany, whilst Trump's leadership will come's under scrutiny in the US as he tries to push through tax reforms; the charts, meanwhile, maintain a constructive tenor.

The Euro-to-US Dollar's uptrend looks overstretched, but given there are no signs of reversal yet its not possible to say it will continue higher. Euro will need more good datas to rally - Dollar progress on tax reform.

We retain a positive bias for the pair at the start of a new trading week after the exchange rate broke out higher and the Eurozone economy continues to show improving strength.

The Euro-to-US Dollar has been looking less bearish of late after a recovery at the end of last week brought into question the validity of a bearish pattern on the chart.

The EUR/USD chart is looking extremely bearish at the start of the new trading week.

The Euro-to-Dollar exchange rate has formed a bearish topping pattern ahead of a key announcement by the European Central Bank, suggesting they may disappoint, and hopes of Trump tax cuts could help the Dollar provide downside impetus for the pair.