EUR/USD Plunges on Trump's Biggest Tariff Threat Since 1934

EUR/USD declined sharply on renewed Trump tariff threat. It hit a low of 1.16821 and is currently trading around 1.17042. Overall trend remains bearish as long as resistance 1.18295 holds.

Donald Trump increased tariff threats on July 8, 2025, revealing fresh and possible tariffs on many different industries and trading partners. Effective August 1, 2025, this covers a 50% import duty on copper, which sent U. S. copper futures sharply up immediately. After a grace period for businesses to move production to the United States, he also cautioned against a possible 200 percent tax on imported drugs. Additionally, as a reaction to their attempts to contest the U. S. dollar, Trump verified plans for a 10% tariff on all imports from BRICS countries, including new members like Indonesia and Iran, with no exemptions. The government is also looking into imports of semiconductors and key minerals for potential future taxes. Through tariff letters sent to several countries, these efforts have driven the effective U. S. tariff rate to its highest since 1934, causing market effects and frantic calls for negotiations from world trade partners.

The pair is holding below the 55 EMA,200 EMA, and 365 EMA in the 15-minute chart. Near-term resistance is seen at 1.1730; a break above this may push the pair to targets of  1.1765/1.1800/1.1835/1.19090/1.1956/1.200.  Major bullish momentum is likely only if prices can break above the 1.200 targets 1.2100. On the downside, support is seen at 1.17200; any violation below will drag the pair to 1.1680/1.1660/1.1600.

Market Indicators and Trading Strategy

Commodity Channel Index (CCI)-  Bearish

Average Directional Movement Index (ADX) - Bearish

 It is good to sell on rallies around 1.17438-40 with a stop-loss at 1.1765 for a target price of 1.1600.