Fundamental view:

Euro kept surfing yields’ waves, and the greenback was the winner. Euro is trading around 1.1900 levels in the previous week. The Central banks are taking different stances on soaring yields. On Wednesday, the US Federal Reserve had a monetary policy meeting, and the policymakers maintained the current policy unchanged as it was anticipated .But Jerome Powell´s remarks shed some light on the future of rates. On the other hand, The European Central Bank announced it would ramp up bond-buying to tackle surging yields in the previous week. Both the ECB and Fed announcement were good enough to cool yields, but only for a short span of time.

EIA Distillate Fuel Production Change on 17^th March and US Initial Jobless Claims on 18^th March created bullish trend whereas US TIC Net Long-Term Transactions on 15^th March and Europe CPI FOI excl. Tobacco y/y & US Retail Control on 16^th March created bearish trend for the pair.

The major economic events deciding the movement of the pair in the next week are Fed Chair Powell Speech at Mar 22, Fed Chair Powell Testimony at Mar 23, ECB Non-monetary Policy Meeting, US Core Durable Goods Orders monthly report at Mar 24, EU Leaders Summit, US GDP quarterly report at Mar 25, Europe Ifo Business Climate, PCE Price Index at Mar 26.

 EUR/USD Weekly outlook:

Technical View:

Last week’s high was 0.01% lower than the previous week. Maintaining high at 1.1989 and low at 1.1874 showed a movement of 115 pips.

In the upcoming week we expect EUR/USD to show a bearish trend. The currency pair is trading below the 200 Simple Moving Average and the MACD trades to the downside. A solid breakout below 1.1854 may open a clean path towards 1.1807 and may take a way down to 1.1739. Should 1.1969 prove to be unreliable resistance, the EURUSD may raise upwards 1.2037 and 1.2084 respectively. Chart formation of a double top pattern in H4 chart sets prospects for a bearish trend. Bearish engulfing formation in H4 chart escalates the expectation for a bearish trend.