Recent Performance:
Price Movements: The EUR/USD pair reached a multi-month high of 1.1145 before declining to approximately 1.0962. This fluctuation reflects market reactions to recent U.S. tariff implementations and the evolving trade dynamics between the U.S. and the European Union.
Technical Analysis:
Support and Resistance Levels:
• Support: 1.0945, 1.0864, and 1.0742.
• Resistance: 1.0986, 1.1027, and 1.1108.
The pair is currently testing the support at 1.0945. A rebound from this level could indicate a resumption of the upward trend, while a break below may suggest further downside potential.
Technical Indicators:
• Marlin Oscillator: Indicates signs of resuming growth after stabilizing in positive territory.
• Relative Strength Index (RSI): Approaching oversold levels, suggesting potential for a bullish reversal.
These indicators point towards a possible continuation of the bullish trend, contingent on maintaining support levels.
Fundamental Factors:
• U.S. Tariffs: The recent imposition of U.S. tariffs on European goods has introduced uncertainty, impacting investor sentiment and contributing to the pair's volatility.
• Federal Reserve Policy: Fed Chair Jerome Powell's indication of a patient approach to interest rate adjustments, amidst concerns of stagflation, has influenced market expectations and the USD's performance.