Economic Update: EUR/USD Current Price at 1.1070
- United States Trade War Impact: Recent announcements of reciprocal tariffs by the United States and China have put markets in risk-off mode, leading to concerns about a potential recession and inflationary pressures.
- Federal Reserve Meeting Minutes: The Federal Open Market Committee is set to release the Minutes of the March meeting, with market players anticipating a more dovish stance in light of the ongoing trade tensions.
- EUR/USD Movement: The EUR/USD pair is currently trading near 1.1100, with upward momentum driven by US Dollar weakness and market uncertainty.
The EUR/USD pair is responding to geopolitical factors, particularly the trade war between the US and China, which has created volatility in the markets. With both countries imposing tariffs on each other’s goods, investors are concerned about the impact on global economic growth and stability.
Additionally, the upcoming release of the Federal Reserve meeting minutes is expected to provide insights into the central bank’s outlook on the economy and monetary policy. A more dovish tone from the Fed could weaken the US Dollar further, benefiting the Euro in the currency pair.
EUR/USD Technical Analysis
From a technical perspective, the EUR/USD pair is showing signs of bullish momentum, with indicators pointing towards further gains. The pair is trading above key moving averages, indicating a strong uptrend.
On the 4-hour chart, the immediate support is seen around 1.0970, with resistance levels at 1.1100, 1.1150, and 1.1190. A break above 1.1100 could signal a continuation of the uptrend in the short term.
Support Levels: 1.1045, 1.1005, 1.0970
Resistance Levels: 1.1100, 1.1150, 1.1190
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In this updated economic analysis, we have highlighted the impact of the ongoing trade tensions between the US and China on the EUR/USD currency pair. The market sentiment has turned cautious due to the reciprocal tariffs announced by both countries, leading to concerns about economic growth and inflation.
Furthermore, the upcoming release of the Federal Reserve meeting minutes is expected to provide clarity on the central bank’s stance in response to the trade war. A more dovish outlook from the Fed could weaken the US Dollar, benefiting the Euro in the currency pair.
From a technical standpoint, the EUR/USD pair is showing bullish momentum, with indicators suggesting further upside potential. Traders should keep an eye on the support levels at 1.1045, 1.1005, and 1.0970, while resistance levels are seen at 1.1100, 1.1150, and 1.1190. A break above 1.1100 could signal a continuation of the uptrend in the short term, providing trading opportunities for investors.