The AUD/USD and the EUR/USD weekly analysis explain how the market responded to various pairs.  It explains the technical, fundamental, and sentimental outlook. 

- AUD/USD is trying to create a momentary ground.

- EUR/USD outlook on Monday looks positive after gaining momentum from USD.

- The uptrend lacks the confirmation factor, especially with uncertainty over the ECB's interest rates.

- Traders are sceptical about trading aggressively following the major risk events.

AUD/USD

This week started on a good note for The Australian Dollar. The currency amassed a substantial uptrend and maintained its rate on Tuesday. This sharp uptrend is catalysed by the decline of the USD across the board. 

AUD/USD is currently trading at its August lows after attempting an uptrend move ending last month. However, traders are hopeful, especially after it created a minor uptrend level last month.  

In recent weeks, AUD/USD has struggled to hold above the support level. If the price manages to break above the 0.6525 resistance line, there will be a price reversal. Checking out other AUD/USD timeframes, like the weekly timeframe, shows that the pair is oversold,  this means that prices are getting to their peak and price reversal is imminent. 

AUD/USD Technical Outlook

EUR/USD started this week on a positive note. Last week,  the pair was down at 1.0685, but this week shows the pair has moved higher away from the three-month low. This uptrend is fuelled by the significant supply of the USD. However, traders are still reluctant to bet aggressively on the pair, as they await a major data report this week, the US macro data, and the important European Central Bank (ECB) meeting. 

The US consumer inflation report will be published on Wednesday. Additionally, the Monthly Retail sales report and the US Producer Price Index (PPI) will be published on Thursday. This week will also see the ECB announcement on monetary policy.

However, the possibility for the Federal Reverse (Fed) to increase policy tightening will negatively affect the EUR/USD pair. This policy will strike out the EUR/USD profits. However, last week, some Fed bureaucrats stated that there would be no further increase in interest rates this September. The markets seem to be speaking a different language, as analysts are predicting one more 25 bps increase by year-end. In addition to this, the US data publisher last week pointed towards a rigid economy, further substantiating the possible increase in interest rates. Analysts from The Wall Street Journal stated that bureaucrats would rather risk a further rate hike, as it can be easily reversed. These points are in favour of the high US Treasury bond yields and will lead to a bullish USD.

Traders are sceptical about taking a stance concerning the EUR/USD. This is due to the tension over the ECB's further increase in interest rates. Analysts are torn between the ECB increasing interest rates or the ECB taking a hiatus in its historical rate hikes with an impending economic plunge of the Eurozone. These events are making traders develop cold feet around the pair. They are waiting for confirmation before going long after a price reversal is certain. 

Although the week is just kicking off, the Euro seems to be moving on track, following a 5-day gain since July. This gain up thrust has ended its 8-week continuous decline. However,  looking at the market sentiment, traders are still sceptical about a bullish price reversal. 

EUR/USD Technical Outlook

The EUR/USD technical outlook shows a bearish trend, moving below the 200-day Simple Moving Average. The indicators show a negative price move, and it's yet to get to the oversold region.  This means the resistance level for EURUSD is in the downward region. This signals that a bullish move will also signal a selling option. No potential price reversal is in sight, as any bullish trend will quickly reverse back. 

Formidable forces seem to be protecting the bearish trend along the 1.0645 regions. Price seems to be steady ahead of the May swing low down the 1.0635 price mark. Most traders sold off which further plunged the pair down to 1.0600. Traders predict a more prolonged bearish trend moving down the near support 1.0525, a low recorded on March 8. A further decline can see price hitting the 1.0500 heading towards the 1.0480 level. This low price mark was recorded in January. A near-term price reversal is feasible, however, the larger part of the horizon stays bearish.