EURUSD has finally broken below the key 1.15 level, triggering a move lower in line with earlier expectations. The drop follows the US imposing fresh tariffs on European goods, a move that traditionally strengthens the currency of the tariff-imposing nation.
Supporting the dollar further, the latest ADP and GDP reports came in stronger than forecast, while the Fed remains hawkish despite pressure from President Trump to cut rates. Inflation is expected to rise as tariffs take effect, giving the Fed reason to stay firm.
Technically, EURUSD may still bounce short term but the overall bias is lower. As long as it stays below 1.1653, the bearish case holds. Target zones include 1.10 or even 1.0950, offering a risk-reward ratio close to 3 to 1.
This content is not directed to residents of the EU or UK. Any opinions, news, research, analyses, prices or other information contained on this website is provided as general market commentary and does not constitute investment advice. ThinkMarkets will not accept liability for any loss or damage including, without limitation, to any loss of profit which may arise directly or indirectly from use of or reliance on such information
Supporting the dollar further, the latest ADP and GDP reports came in stronger than forecast, while the Fed remains hawkish despite pressure from President Trump to cut rates. Inflation is expected to rise as tariffs take effect, giving the Fed reason to stay firm.
Technically, EURUSD may still bounce short term but the overall bias is lower. As long as it stays below 1.1653, the bearish case holds. Target zones include 1.10 or even 1.0950, offering a risk-reward ratio close to 3 to 1.
This content is not directed to residents of the EU or UK. Any opinions, news, research, analyses, prices or other information contained on this website is provided as general market commentary and does not constitute investment advice. ThinkMarkets will not accept liability for any loss or damage including, without limitation, to any loss of profit which may arise directly or indirectly from use of or reliance on such information
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.