• The optimism generated by reports of US-EZ auto deal and hawkish ECB expectations are capping the downside in the EUR. 
  • However, the calm in the EUR/USD market could be short-lived as Trump's trade war is here. 

The US-China trade war has become a reality, however, EUR/USD is showing no signs of stress.

Focus on US-China trade war

The US tariffs on $34 billion worth of Chinese imports have come into effect today at 0400GMT. Further, President Trump has threatened to impose an additional $500 billion tariffs if Beijing imposes retaliatory tariffs in response to initial US tariffs.

Clearly, the world's two biggest economies are closing on a long drawn out trade war, still, the pair is trading flat-lined around 1.1685, having hit a high of 1.1720 yesterday. The downside is likely being capped by more hawkish European Central Bank (ECB) expectations and reports suggesting a possible US-Eurozone auto trade deal.

However, the financial markets may turn risk-averse in European and US session. Hence, the calm in the EUR/USD could be short-lived. Further, the trade standoff could overshadow the monthly US non-far payrolls figure, scheduled for release at 12:30 GMT today.

EUR/USD Technical Levels

Resistance:1.17 (psychological hurdle). 1.1743 (descending 50-day moving average), 1.1852 (June 14 high).

Support: 1.1648 (10-day moving average), 1.1591 (July 2 low), 1.1508 (June 21 low).

15M Bearish Neutral Expanding
1H Bullish Neutral Low
4H Bullish Neutral Expanding
1D Bullish Neutral Low
1W Bearish Oversold High


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.

Feed news Join Telegram

Recommended content

Recommended content

Editors’ Picks

EUR/USD slips to near 1.0450 ahead of Eurozone HICP and US ISM PMI

EUR/USD slips to near 1.0450 ahead of Eurozone HICP and US ISM PMI

EUR/USD has recorded a minor correction after hitting a high of 1.0489 on Thursday. The major is expected to remain on the sidelines as investors are awaiting the release of the US ISM PMI and eurozone Harmonized Index of Consumer Prices (HICP).


GBP/USD: Bears attack 1.2100 with eyes on yearly low, UK/US PMI

GBP/USD: Bears attack 1.2100 with eyes on yearly low, UK/US PMI

GBP/USD is nearing 1.2100, returning to bear’s radar, after a one-day absence. Brexit, politics and economic pessimism weigh on the pound in early Europe. Doubts over ‘partygate’ investigation take rounds, Irish deputy PM accuses No10 over NIP. UK/US PMIs eyed. 


Gold bears eye $1,787 as recession fears amplify ahead of US ISM PMI

Gold bears eye $1,787 as recession fears amplify ahead of US ISM PMI

Gold Price stands on slippery grounds as it slides to the lowest levels since early May, around $1,797 by the press time of early Friday morning in Europe. The yellow metal drops for the fifth consecutive day amid fears of escalating inflation and economic slowdown.

Gold News

Is this a buy signal for Shiba Inu price or month-end volatility?

Is this a buy signal for Shiba Inu price or month-end volatility?

Shiba Inu price embarked on a massive uptrend after bottoming on June 19. The ascent faced issues and headwinds, leading to an eventual retracement.

Read more

FXStreet Premium users exceed expectations

FXStreet Premium users exceed expectations

Tap into our 20 years Forex trading experience and get ahead of the markets. Maximize our actionable content, be part of our community, and chat with our experts. Join FXStreet Premium today!