EURUSD has been trading in a fairly right range following Friday’s European consumer price index results, which were in line with expectations. But with a busy week for economic announcements, it looks likes like there could be some volatility on the way.

Alex Joyner from Faraday Research says traders will be focusing on manufacturing PMI figures in the US, coming out on December 1. Later in the week there will be an interest rate decision from the European Central Bank and US non-farm payrolls. 

On the daily chart the pair has been locked into a long-term downtrend since April. This could quite possibly continue well into 2015, given the growing momentum of Dollar strength and the looming threat of full blown quantitative easing hanging over the Euro.

Zooming in on the four-hour chart, Faraday has identified a well-defined descending trendline which presents a good opportunity to short this pair. More aggressive traders might like to sell at the market price, setting their stop loss just above the descending trendline.

A more conservative approach would be to wait for the price to pull back up to the line before selling. The first target would be at around 1.2360, although depending on the figures this week there could be a break below this level and even more downside movement.