Forex: EUR/USD rallies after Canada Ivey PMI

FXstreet.com (Barcelona) - The surprisingly expansionary figure of the December Ivey PMI in Canada triggered a selloff of the greenback in favor of riskier currencies, particularly the greenback. The single currency is also enjoying this market movement, being allowed to rally to 1.3082 high, which turns the daily candlestick into "green", above the opening price.

Investors may start pricing in expectations ahead of economic data in Europe over the next days, including EMU unemployment rate, consumer confidence, retail sales, and Germany trade balance tomorrow, EMU GDP on Wednesday, and the ECB's monetary policy announcement on Thursday. China data might also affect the market this week, with China retail sales, industrial production, trade balance, and CPI ahead.

"The downtrend from 1.3310 is already over with last week's low at 1.2997 and the intraday outlook is positive, for a rise towards 1.3125 resistance area", wrote Deltastock.com analyst Stoyan Mihaylov, pointing to major support below the dynamic projection at 1.2960 is seen at 1.2880.