WIKIFX REPORT: EURUSD: Is the bottom nearby?

The Currency Pair EUR/USD is the shortened term for the euro against U.S. dollar pair, or cross for the currencies of the European Union (EU) and the United States (USD). The euro slumped to a fresh two-decade low of 0.9900 against the US dollar on Tuesday as the latest surge in European gas prices added to worries about a recession. European gas prices break the $3,000 mark this week after Gazprom's announcement of unscheduled maintenance at the Nord Stream 1 pipeline at the end of this month.

The EURO dropped more than 13% this year. The strong bearish sentiment was also fueled by the resurgence in the US dollar. The dollar rally comes after the renewed concerns about aggressive interest rate hikes. On Tuesday, the currency pair slightly recovered in early New York trading after the release of disappointing US PMI and new home sales data. EURO was initially under pressure on Tuesday following the release of mixed PMI data from the Euro Area, Germany, and France.

EURO weekly fundamental forecast

EUR/USD Weekly Price Forecast – Euro Gives Up Early Gains for The Week ... The Euro has given up early gains for the week, showing signs of hesitation near the ...

The Euro has been taking on water since the Russia-Ukraine war started. And there has been an uptick in the amount of news and negativity surrounding the currency pair. Moving ahead, first, traders will get an update on a broad swath of the economy through the German GDP data and ECB meeting minutes. Then, Euro traders will turn their eyes toward Fed Chair Jerome Powells speech at the annual symposium in Jackson Hole, Powell may provide investors with more clues about the next monetary moves from the Fed, even though a 50-basis point rate hike is now fully priced in September meeting.

EURUSD technical outlook

From a technical point of view, the trend on the EUR/USD is clearly bearish. But there are tentative signs that the bulls might be coming back. Turning to the daily chart, we see that the EURUSD is trading at 0.9950 on Wednesday morning. The pair bounced almost 100 pips on Tuesday's New York session but failed to close above the psychological level of 1.0000 on a daily basis, and now the pair trades comfortably below that region which increases the possibility that the bears could be gaining control.

In the short-term, the first immediate resistance level for the pair is 1.0050, then the stronger resistance is 1.0130 and trying to breach the mentioned resistance will push the price back to the main bullish track to achieve gains that begin at 1.0220 and extend to 1.0340. However, a weekly close below the 0.9870 mark would set the stage for the resumption of the downtrend. If the pair breaks below 0.9870, the slump will quickly extend toward the 0.9800 mark.