EUR/USD Outlook Bearish Close to Time period, Bullish Lengthy Time period

Basic Euro Forecast: Blended

• The bounce in EUR/USD final week seems to have run its course and a resumption of its earlier slide decrease is now doable.
• Longertime period, nonetheless, the pair is properly positioned to profit from any US Greenback weak point because the US elections in November method.

EUR/USD worth decline seemingly in coming days

Final week was an vital one for EUR/USD, with the bounce predicted right here per week in the past duly going down. Within the course of, the 20-day transferring common crossed under the 50-dma – a bearish technical sign – and the 14-day relative energy index, which was signaling an oversold market, is now not doing so.

This all suggests one other transfer decrease within the coming days, when an absence of top-tier Eurozone information will go away EUR/USD merchants free to focus on the technical image. In reality, the one numbers of be aware are the ultimate September buying managers’ indexes for the service sectors in Germany, France and the Eurozone as an entire.

EUR/USD Worth Chart, Day by day Timeframe (July 1 – October 1, 2020)

Supply: Refinitiv (You’ll be able to click on on it for a bigger picture)

Long run, nonetheless, the outlook is extra constructive – with caveats – as my colleague Ilya Spivak and I clarify in our new DailyFX Euro Forecast information to the fourth quarter of 2020, which we now have simply revealed. For a replica, simply click on on the hyperlink under to obtain it in your inbox.

Really useful by Martin Essex, MSTA

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— Written by Martin Essex, Analyst

Be at liberty to contact me on Twitter @MartinSEssex