Fundamental view:

Fed Announcement at Jul 28 and US CB Consumer Confidence at Jul 28 and EU Prelim Flash GDP at Jul 31 pushed for a bearish trend for the pair whereas German Buba Monthly Report at Jul 27 and US Advance GDP quarterly report at Jul 30 supported Euro and created a bullish trend for the pair, The unfavorable result of US Unemployment Claims at Jul 30 and US Core Durable Goods Orders at Jul 27 supported for a bullish move.

US faced challenges like delay in the much-awaited US corona virus (COVID-19) aid package, the surge in the pandemic which impacted it negatively. Hence EUR/USD showed a bullish trend last week.

The major economic events deciding the movement of the pair in the next week are Europe Final Manufacturing PMI, US ISM Manufacturing PMI at Aug 03, French Gov Budget Balance at Aug 04, US ISM Non-Manufacturing PMI at Aug 05, US Unemployment Claims at Aug 06, and US Average Hourly Earnings monthly report at Aug 07.

EUR/USD Weekly outlook:

Technical View:

Last week’s high was 2.15% higher than the previous week. Maintaining high at 1.1908 and low at 1.1642 showed a movement of 385 pips.

In the upcoming week we expect EUR/USD to show a bearish trend. The currency pair is trading above the 100 Simple Moving Average and the MACD trades to the downside. A solid breakout below 1.1639 may open a clean path towards 1.1507 and may take a way down to 1.1373. Should 1.1906 prove to be unreliable resistance, the EURUSD may raise upwards 1.2040 and 1.2172 respectively. Chart formation of a Bearish crab pattern in H4 chart sets prospects for a bearish trend. Three black crows formation in H4 chart escalates the expectation for a bearish trend.