EUR/USD Current price: 1.0820
- US President Donald Trump's announcements on tariffs weigh on the market’s mood.
- US Consumer Confidence is expected to have shrunk further in March.
- EUR/USD recovered from a lower low, struggling for directional strength.
the
The EUR/USD pair trades with a soft tone for the fifth consecutive day, extending its slide to 1.0776, the lowest since March 6. However, broad US Dollar (USD) weakness mid-European session sent the pair into positive territory.
On the one hand, tepid European data limited the Euro (EUR) advance. Germany released the March IFO Business Climate Index, which rose to 86.7 from 85.3 in February, although it missed the 86.8 expected. Additionally, the Current Economic Assessment Index improved to 85.7 from 85 in February, while Expectations rose to 87.7 in the month, against the 85.6 previous, both beating the market’s forecast.
On the other hand, headlines indicate that United States (US) President Donald Trump is planning to adopt a two-step approach as his tariff strategy. The news came after Trump threatened to impose 25% tariffs on countries purchasing oil and gas from Venezuela, on Monday. As a result, the USD came under renewed selling pressure amid concerns that tariffs will have on economic progress and future interest rate movements.
The US session will bring a slew of Federal Reserve (Fed) speakers, and March CB Consumer Confidence foreseen at 94.2, easing from the 98.3 posted in February. The US will also release February New Home Sales and the March Richmond Fed Manufacturing Index.
EUR/USD short-term technical outlook
From a technical point of view, the daily chart for the EUR/USD pair shows the pair holds on to most of its intraday gains, while at the same time, it posted a lower low and a lower high. EUR/USD keeps developing above a bullish 20 Simple Moving Average (SMA) which advances above directionless 100 and 200 SMAs, which limits the bearish potential. The Relative Strength Index (RSI) indicator is flat at around 59, also limiting the downside, while the Momentum indicator maintains its bearish slope just above its 100 line, reflecting persistent selling pressure.
In the near term, and according to the 4-hour chart, the bearish potential seems limited, although additional gains are still out of the picture. The EUR/USD pair is finding buyers around a bullish 100 SMA, but is unable to advance beyond a bearish 20 SMA. Finally, technical indicators aim higher, but remain within negative levels.
Support levels: 1.0785 1.0745 1.0710
Resistance levels: 10830 1.0860 1.0905
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 above 1.1100 ahead of US inflation data
EUR/USD clings to marginal gains above 1.1100 in the European session on Tuesday. The pair firms up as the US Dollar extends pullback as traders resort to repositioning ahead of the key US CPI data release. ZEW Survey - Economic Sentiment in the Eurozone improved to 11.6 in May from -18.5 in April.
GBP/USD stays well bid near 1.3200 after UK employment data
After posting large losses on Monday, GBP/USD trades marginally higher at around 1.3200 in the European session on Tuesday. The data from the UK showed that the ILO Unemployment Rate edged higher to 4.5% in the three months to April, as expected.
Gold price recovers as US-China trade agreement euphoria fades quickly
Gold rebounds and trades near $3,260 at the time of writing on Tuesday, recovering from the 2.65% drop the previous day after the US-China trade deal was announced. Traders are starting to get wary about the lack of detail in the announcement, and another flare-up could propel bullion back toward the record high set last month.
US CPI set to show stable inflation in April as markets weigh early impact of tariffs
The high-impact United States Consumer Price Index (CPI) inflation report for April will be published by the Bureau of Labor Statistics on Tuesday at 12:30 GMT. The inflation index is forecast to rise at an annual rate of 2.4% in April, at the same pace as in March. The core CPI inflation is expected to stay at 2.8% year-over-year (YoY) in the reported period.
US-China trade truce only emphasizes timeless investing truths
Markets roared back to life as the US and China hit pause on their escalating trade war, with both sides emphasizing mutual respect and dignity. But it wasn’t the fine print that moved markets—it was the mood shift. Investors rushed back into risk assets, betting that the worst might be behind us.
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.