Fundamental view: 

The Euro has shot straight up in the air again during the week, but as you can see continues to struggle with the previous uptrend line that had been so important. Uncertainty about economic growth within the pandemic context, and the upcoming US presidential election made the pair confusing to choose direction till now. With corona virus outbreaks spread like wildfires and government taking tough measures just shy of lockdowns, speculative interest is extremely cautious, and will likely remain so. Vaccines and treatments are still under study and advancing, but there’s no magic solution yet.

US NAHB Housing Market Index on 19th Oct and US Crude Oil Inventories on 21st Oct created bearish trend for the pair whereas Europe German PPI monthly report on 20^th Oct and Europe German Flash Manufacturing PMI, Flash Manufacturing PMI on 23^rd Oct created bullish trend for the pair.

The major economic events deciding the movement of the pair in the next week are Euro Unemployment Rate at Oct 27, US Core Durable Goods Orders monthly report, US CB Consumer Confidence Index at Oct 27, ECB Interest Rate Decision, US GDP quarterly report at Oct 29, and US Core PCE Price Index yearly report at Oct 30.

EUR/USD Weekly outlook:

Technical View:

Last week’s high was 0.46% higher than the previous week. Maintaining high at 1.1880 and low at 1.1703 showed a movement of 177 pips.

In the upcoming week we expect EUR/USD to show a bullish trend. The currency pair is trading above the 200 Simple Moving Average and the MACD trades to the upside. A solid breakout above 1.1926 may open a clean path towards 1.1992 and may take a way up to 1.2103. Should 1.1748 prove to be unreliable support, the EURUSD may sink downwards 1.1637 and 1.1570 respectively. Chart formation of a three rising valleys Pattern formation in H4 chart sets prospects for a bullish trend. Hammer formation in H4 chart escalates the expectation for a bullish trend.