EUR/USD outlook: Hits one-month high on fresh twist in US-EU tariff story

Slobodan Drvenica Windsor Brokers

EUR/USD

EURUSD rose to one-month high on Monday after receiving fresh boost from the latest US/EU trade tariffs.

President Trump shocked markets again after announcing 50% tariffs on all imports from EU as from June1, with unexpected change of its plans over the weekend, to put tariffs on hold until July 9 and allow for talks between two sides, providing relief and fueling risk appetite.

The pair broke above Fibo 61.8% of 1.1573/1.1065 correction and cracked round-figure 1.1400 barrier, though quick pullback (shown on hourly chart) warns of increased headwinds above 1.14.

Overbought stochastic on daily chart contributes to the scenario however, dips are likely to be shallow and mark positioning for fresh push higher as overall picture is bullish (rising thick daily cloud continues to underpin the advance, daily Tenkan/Kijun-sen are converging and about to form a bull-cross that would verify positive signal.

Dips should find firm ground at 1.1320 (daily Kijun-sen) to keep bulls in play for fresh attempt through 1.1400 zone and extension towards targets at 1.1453 (Fibo 76.4%) and 1.1500 (psychological).

Res: 1.1400; 1.1418; 1.1453; 1.1500
Sup: 1.1359; 1.1320; 1.1300; 1.1270

Interested in EUR/USD technicals? Check out the key levels

1. R3 1.1498
2. R2 1.1437
3. R1 1.14
PP 1.1339
1. S1 1.1303
2. S2 1.1242
3. S3 1.1205

Author

Slobodan Drvenica

Windsor Brokers

Industry veteran with over 22 years’ experience, Slobodan Drvenica joined Windsor Brokers in 1995 when he was an active trader for more than 10 years, managing the trading desk and own account departments.

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