Fundamental view:

In the past week, EU German PPI monthly report at 20^th July stressed the pair and created a bearish trend for the pair whereas EU German 30-y Bond Auction and US HPI monthly report at 22^nd July and EU German GfK Consumer Climate bullish move on 23rd July impacted the pair positively creating a bullish trend.

As per the recent Euro summit, European Union (EU) hardliners are reportedly ready to accept EUR 390 billion in grants on corona virus recovery fund. This comes after the earlier Reuters report that the Frugal Four are ready to accept EUR 390 billion in grants and EUR 360 billion in loans, this update favoured the pair in the week. Hence EUR/USD showed a bullish trend last week. The pair has broken the March 2020 high of 1.1495.

The major economic events deciding the movement of the pair in the next week are Spanish Unemployment Rate, US CB Consumer Confidence at Jul 28, FOMC Press Conference at Jul 29, German Prelim GDP quarterly report, US Advance GDP quarterly report, Unemployment Claims at Jul 30.

EUR/USD Weekly outlook:

Technical View:

Last week’s high was 1.8% higher than the previous week. Maintaining high at 1.1658 and low at 1.1402 showed a movement of 256 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 1.1741 may open a clean path towards 1.1827 and may take a way up to 1.1996. Should 1.1485 prove to be unreliable support, the EURUSD may sink downwards 1.1316 and 1.1230 respectively. Chart formation of a Bullish Pennant in H4 chart sets prospects for a bullish trend. Bullish Hammer formation in H4 chart escalates the expectation for a bullish trend.