There are many things weakening the single currency. Concerns over a lack of consensus on euro-area bonds, dollar-positive data from the US, fears about China being forced to cool down its economy and now, an ascending channel clearly shaping up on the 60-minute EUR/USD chart.

Technical study shows that the pair is expected to further lose momentum with the nearest target seen at 1.3059 and a break below which may take it to the 1.2968 level.

Even a break below 1.2968 will not signal an oversold scenario for the pair, which will still be within a falling channel formed early November, as the big picture shows, and 1.3422 remains a strong resistance at least for this month.

At 7:30 GMT Monday, EUR/USD was at 1.3233, from its previous close of 1.3236. the pair moved in a range of 1.3281 and 1.3177 so far in the day.

Data from China over the weekend showed its November consumer price inflation rose to 5.1 percent, higher than 4.4 percent in the previous month. Its retail sales and industial production also outpaced October growth in November.

With no data scheduled for Monday from the euro-zone and the US, investors are eying EMU industrial production for October and Gemany's ZEW economic sentiment indicator for December, due Tuesday.

US retail sales and producer price data for November as well as Fed's monetary policy announcement will add to Tuesday's importance this week.

The EU leaders' summit scheduled for December 16-17 will also be crucial for the pair as the meeting may address differences of opinion among the region's constituent economies over the euro-area bonds.

Italy, Belgium and Luxemberg strongly favour the idea while Germany and France are against it.

Even

Even a break below 1.2968 will not signal an oversold scenario for the pair, which will still be within a falling channel formed early November, as the big picture shows.