The Fed’s rate hike took the dollar to new highs weighing on the euro. Rising energy costs are shrinking the European economy. Europe faces a recession as the Ukraine war escalates. The EUR/USD weekly forecast is bearish as recession worries increase amid a gas crisis in Europe. The pair has seen a massive fall in the week. -Are you looking for automated trading? Check our detailed guide- Ups and downs of EUR/USD The US Federal Reserve raised rates by 75 bps to 3.24% in response to higher-than-anticipated core inflation in August. Powell’s hawkish comments after the hike pushed the EUR/USD lower. Meanwhile, the rising hostilities between the EU and Russia caused another setback for the pair. As Moscow lost momentum in the invaded territory, President Vladimir Putin ordered a mobilization to bolster troops in Ukraine and called on 300,000 civilian reservists. As winter draws near, the war’s progress exacerbates the energy situation in Europe, increasing the likelihood of a longer and deeper recession. “Given the downward risks and the high degree of uncertainty, everything is pushing towards a contraction in economic activity in the eurozone over the coming quarters,” said economists at ODDO BHF. S&P Global announced the early projections for its September PMIs on Friday. According to European indexes, the economy shrank even more due to rising energy costs. Next week’s key events for EUR/USD Next Tuesday, the US will release the final reading of the second quarter’s gross domestic product, which is anticipated to be confirmed at -0.6% YoY growth. On Friday, the EU will release figures on inflation that will cause a lot of volatility as it will impact the ECB’s next rate hike. Core inflation is expected to rise from 4.3% to 4.7%. Get FREE Forex Signals Now! EUR/USD weekly technical forecast: A strong plunge with no bottom in sight. The EUR/USD pair’s slide began this week after taking a break, and there are currently no technical indications that it will soon reach a bottom. The daily chart shows the price trading far below the 22-SMA, and the RSI oversold. The pair is now clearly trading below 1.0000 and has closed at 0.9709. If there is any bullish action at all, it will be a pullback after such a strong move. -If you are interested in forex day trading then have a read of our guide to getting started- The price might fall further to 0.9604 before returning to retest resistance at 0.9900. Buyers might return because the RSI is oversold. However, the downtrend will likely continue next week. Looking to trade forex now? Invest at eToro! Trade Forex Now! 67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. Saqib Iqbal Saqib Iqbal Saqib Iqbal is a market analyst, prop fund trader and mentor, serving the industry with his analysis and educational content since 2011. The author has great exposure to different financial markets and institutions. He's well-known for his day trading reviews and multiple timeframe analysis. View All Post By Saqib Iqbal EUR/USD Forecast share Read Next GBP/USD Weekly Forecast: Sterling Set to Fall Further amid Recession Saqib Iqbal 2 months The Fed's rate hike took the dollar to new highs weighing on the euro. Rising energy costs are shrinking the European economy. Europe faces a recession as the Ukraine war escalates. The EUR/USD weekly forecast is bearish as recession worries increase amid a gas crisis in Europe. The pair has seen a massive fall in the week. -Are you looking for automated trading? Check our detailed guide- Ups and downs of EUR/USD The US Federal Reserve raised rates by 75 bps to 3.24% in response to higher-than-anticipated core inflation in August. Powell's hawkish comments after the hike pushed the EUR/USD… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk.2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk.3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk.4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk.5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.