Fundamental view:

The Euro struggled and managed to rise higher against dollar, it climbed to 1.19 again in the past week. NBB Business Climate & US HPI monthly report on 25^th August and US Prelim GDP quarterly report, Pending Home Sales on 26^th August favored downtrend for the pair whereas Europe German Final GDP quarterly report on 25^th August and German Import Prices monthly report on 28^th August favored uptrend for the pair.

Until the Federal Reserve changes its tune we expect Euro to be stronger than dollar.

The major economic events deciding the movement of the pair in the next week are Europe Unemployment Rate, US ISM Manufacturing PMI at Sep 01, US ADP Non-Farm Employment Change at Sep 02, US ISM Non-Manufacturing PMI at Sep 03, French Gov Budget Balance and US Unemployment Rate at Sep 04.

EUR/USD Weekly outlook:

Technical View:

Last week’s high was 0.38% lower than the previous week. Maintaining high at 1.1919 and low at 1.1762 showed a movement of 157 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 1.1963 may open a clean path towards 1.2020 and may take a way up to 1.2120. Should 1.1806 prove to be unreliable support, the EURUSD may sink downwards 1.1705 and 1.1648 respectively. Chart formation of a Bullish shark pattern in H4 chart sets prospects for a bullish trend. Spinning top formation in H4 chart escalates the expectation for a bullish trend.