EUR/USD Current price: 1.0387
- Market talks about President-elect Donald Trump's tariffs led the way.
- European data signaled the local economy is still struggling to recover.
- EUR/USD aims to extend gains beyond 1.0400 in a risk-on market environment.
The EUR/USD pair hovers in the 1.0380 price zone, holding on to substantial intraday gains after peaking at 1.0431 ahead of the American opening. The US Dollar (USD) fell on headlines from the Washington Post reporting that Donald Trump's transition team was working on tariffs. According to people familiar with the matter, tariffs would focus on key sectors deemed vital to national security, such as defence, medical supplies, and energy.
President-elect Trump then denied the headlines, spurring fresh USD demand, yet not enough to sour the mood: European and American stocks edged higher, keeping EUR/USD on the winning side.
On the data front, the Hamburg Commercial Bank (HCOB) released the final estimates of the Eurozone December Purchasing Managers’ Index (PMI), showing services output was slightly better than previously anticipated, confirmed at 51.6 from a preliminary estimate of 51.4. The Composite PMI resulted at 49.6, slightly better than the 49.5 expected, yet still indicating contraction. Also, Germany published an update on the Consumer Price Index (CPI), which rose to 2.6% on a yearly basis in December from 2.2% in November, surpassing the 2.4% expected.
The United States (US) released November Factory Orders, which declined by 0.4% in the month after adding 0.5% in October. Finally, S&P Global released the final estimates of the December US Services and Composite PMIs, which were downwardly revised to 56.8 and 55.4, respectively.
The focus on Thursday will be on the preliminary estimates of the Eurozone December Harmonized Index of Consumer Prices (HICP) and the official US ISM Services PMI, foreseen at 53.
EUR/USD short-term technical outlook
From a technical point of view, the daily chart for EUR/USD shows the bullish potential is still limited. A bearish 20 Simple Moving Average (SMA), provides dynamic resistance at 1.0430, rejecting buyers. At the same time, the 100 and 200 SMAs converge around 1.0800 with modest downward slopes. Finally, technical indicators have bounced from oversold levels, but have decelerated their advances within negative levels.
In the near term, and according to the 4-hour chart the bullish potential persists. EUR/USD holds well above a flat 20 SMA, while a mildly bearish 100 SMA provides dynamic resistance a handful of pips below the intraday high. Finally, technical indicators remain well above their midlines, with the Momentum still aiming north and the Relative Strength Index (RSI) indicator stable at around 58.
Support levels: 1.0370 1.0325 1.0280
Resistance levels: 1.0430 1.0475 1.0510
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
EUR/USD holds firm near 1.1100 ahead of US NFP, Powell
EUR/USD is holding ground near 1.1100 in the early European morning on Friday. Recession fears due to a global trade war lft Fed rate cut expectations, exacerbating the US Dollar's pain while keeping the pair afloat. Traders look to the US NFP report and Fed Chair Powell's speech for fresh directives.
GBP/USD retakes 1.3100 as US NFP data looms
GBP/USD is defending minor bids above 1.3100 in early Europe on Friday. Persistent US Dollar weakness on recession fears and dovish Fed expectations underpin the pair as traders look forward to the US payrolls data and Fed Chair Powell speech for placing fresh bets.
Gold price hovers near $3,100; bullish bias remains ahead of US NFP report
Gold price meets with a fresh supply on Friday, though the downside potential seems limited. Trump’s tariffs-inspired risk-off mood might continue to act as a tailwind for the precious metal. Fed rate cut bets weigh on the USD and should contribute to limiting losses for the XAU/USD pair.
XRP finds new lifeline as Coinbase Derivatives eyes XRP futures on April 21
Ripple price reclaims the $2.00 support level and trades at $2.06 at the time of writing on Friday in the wake of a drawdown to $1.96 during Thursday’s session. Traders continue to exercise caution after Trump’s tariffs hit 100 countries, as per a CryptoQuant report.
Trump’s “Liberation Day” tariffs on the way
United States (US) President Donald Trump’s self-styled “Liberation Day” has finally arrived. After four straight failures to kick off Donald Trump’s “day one” tariffs that were supposed to be implemented when President Trump assumed office 72 days ago, Trump’s team is slated to finally unveil a sweeping, lopsided package of “reciprocal” tariffs.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.