Fundamental view:

Last week the Euro followed bullish rally until Non-Farm Payroll announcement came out on Friday which changed the trend drastically. US Final Manufacturing PMI on 3^rd Aug, US ISM Non-Manufacturing PMI on 5th Aug, and USD Non-Farm Employment Change 7th Aug created a bearish environment for the pair whereas Italian Industrial Production monthly report on 6^th Aug, Spanish Manufacturing PMI on 3rd Aug, US ISM Manufacturing PMI on 3rd Aug favored bullish move for the pair.

The rising cases of corona virus in US and aid package delay by democrats and republicans pressurized USD against Euro in the last week. EUR/USD showed a bullish trend last week.

The major economic events deciding the movement of the pair in the next week are US Core PPI monthly report at Aug 11, Europe Industrial Production monthly report, US Core CPI monthly report at Aug 12, US Unemployment Claims at Aug 13, Europe Flash GDP quarterly report, US Core Retail Sales monthly report at Aug 14.

EUR/USD Weekly outlook:

Technical View:

Last week’s high was 0.05% higher than the previous week. Maintaining high at 1.1915 and low at 1.1696 showed a movement of 219 pips.

In the upcoming week we expect EUR/USD to show a bearish trend. The currency pair is trading above the 200 Simple Moving Average and the MACD trades to the downside. A solid breakout below 1.1682 may open a clean path towards 1.1579 and may take a way down to 1.1463. Should 1.1901 prove to be unreliable resistance, the EURUSD may raise upwards 1.2017 and 1.2120 respectively. In H4 chart Breakout of an Ascending triangle to the downside sets prospects for a bearish trend. Bearish Spinning top formation escalates the expectation for a bearish trend.