Fundamental view:

Spanish Flash Consumer Price Index (CPI) yearly report of the last week at 29th June 2020 created a bullish move for the pair where as ADP Non-Farm Employment Change at 1st July as a catalyst for the downtrend move for dollar. The fear of second wave of corona virus and the prevailing US- China has led Greenback to lose its strength which has boosted EUR against USD.

Many countries in Europe has started showing positive data in the reports of services PMI and Manufacturing  PMI last week which reflects economic recovery in the continent and created hope among the investors .Hence EUR/USD showed a bullish trend last week.

The major economic events deciding the movement of the pair in the next week are EUR Retail Sales monthly report, USD ISM Non-Manufacturing PMI at Jul 06, European Union Economic Forecasts at Jul 08, USD Unemployment Claims at Jul 09, French Industrial Production monthly report, and USD Core Producer Price Index (PPI) monthly report at Jul 10.

EUR/USD Weekly outlook:

Technical View:

Last week’s high was 0.40% lower than the previous week. Maintaining high at 1.1302 and low at 1.1185 showed a movement of 117 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 1.1304 may open a clean path towards 1.1362 and may take a way up to 1.1421. Should 1.1187 prove to be unreliable support, the EURUSD may sink downwards 1.1128 and 1.1070 respectively. Chart formation of a Good W pattern with accumulated area in H4 chart sets prospects for a bullish trend. Bearish Hammer formation in H4 chart escalates the expectation for a bullish trend.