EUR/USD is heading towards a major support line

The pair is heading towards a major support line after it broke out from an uptrend channel support line. The EU’s largest economies – Germany and France – will be reporting their Manufacturing, Markit Composite, and Services Purchasing Managers Index (PMI) today. The reports will be weaker following UK Prime Minister Boris Johnson’s Conservative Party won on the December 12 election. His majority win means the UK Parliament can no longer ask him for a Brexit extension. This, in turn, grows to pessimism among euro traders. A weaker report will further drag the German economy into recession. On December, Germany was able to dodge a technical recession. However, worries remain that the economy might soon be heading into recession. The US economy, on the other hand, has been reaching records for its indices. This was despite the on-going impeachment trial for President Donald Trump.