EUR/USD gained sharply above 1.1500 on board-based US dollar selling. It hits a intraday high of 1.15727 and currently trading around 1.15548.
US-British trade negotiations are going steadily with both parties demanding a trade agreement that lowers tariffs and deepens collaboration, especially in frontier sectors such as biotech, AI, and pharma. Although the UK wishes to scrap the current 10% baseline tariff on US-bound exports, the most contentious issues relate to US calls for access to chlorinated chicken and hormone-treated beef, to which the UK is opposed because of rigorous food safety and animal welfare controls. The emphasis is on new sectors and services, such as technology areas like AI and quantum computing, to tap into research hubs and capital markets in the quest for innovation, in the context of global market uncertainty driven by US tariffs. The UK sticks to retaining its food safety rules and net safety legislation, as with 2024 UK election commitments and public opposition to relaxing standards.
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 1.1580; a break above this may push the pair to targets of 1.1625/1.1690/1.1765. Major bullish momentum is likely only if prices are able to break above 1.1800 targets 1.1900. On the downside, support is seen at 1.1490 any violation below will drag the pair to 1.1440/1.1400/1.1380/1.1330.
Market Indicators and Trading Strategy
Commodity Channel Index (CCI)- Bullish
Average Directional Movement Index (ADX) - Bullish
It is good to buy on dips around 1.1548-50 with a stop-loss at 1.1500 for a target price of 1.170.
