EUR/USD: Bullish Momentum Ignites Above 1.1000 – Trump's Tariffs Can't Stop the Euro

EUR/USD gained sharply above 1.1000 on renewed US dollar weakness. It hits  a intraday high of 1.10469 and currently trading around 1.0319.

Trump's Tariffs and Global Economic Impact

U.S. President Donald Trump has also implemented retaliatory tariffs, including a 10% across-the-board tariff on all imports and a 20% tariff on European Union imports, as part of a broader plan to retaliate against perceived unfair trade practices. ING puts this at reducing euro zone economic growth by 0.3 percentage points over two years, with European stock markets likely to drop heavily, and the European Union making contingency plans for countermeasures in response.

Global Trade War Fears

These tariffs have sent worries of an international trade war, and they will also tend to make global economic growth slow, increase the cost of living, and even create a recession. Trump's move has been seen as subverting the classic international trading system, promoting free trade while jeopardizing commercial operations and increasing the prices consumers pay

Technical Analysis of EUR/USD

The pair is holding  above short and  long term moving average in the 4-hour chart. Near-term resistance is seen at 1.1050; a break above this may push the pair to targets of  1.1070/1.1100/1.1150.  Major bullish momentum is likely only if prices are able to break above 1.1275 targets 1.1480. On the downside, support is seen at 1.0935 any violation below will drag the pair to 1.08650/1.0770/1.07200.

Market Indicators and Trading Strategy

Commodity Channel Index (CCI)-  Bullish

Average Directional Movement Index (ADX) - Bullish

 It is good to buy on dips around 1.1000 with a stop-loss at 1.0930 for a target price of 1.1150.