EUR/USD Surges on Trade War Fears: Riding the "W" Pattern to 1.1150?

Chart pattern- W - pattern

EUR/USD gained sharply above 1.1050 on an escalation of a trade war between US and China. It hits  a intraday high of 1.10946 and currently trading around 1.10460.

In response to President Trump's tariffs, China has escalated the trade war by imposing an 84% tariff on U.S. goods, effective April 10, 2025, signaling its resolve against perceived coercive U.S. trade policies. This escalation has triggered global market volatility, with indices like the S&P 500 plummeting, prompting China to convene a high-level meeting to explore strategies for bolstering its economy, including boosting domestic consumption and exports, amid growing concerns over global economic stability.

Technical Analysis of EUR/USD

The pair is holding above short and long-term moving averages in the 4-hour chart. Near-term resistance is seen at 1.1100; a break above this may push the pair to targets of  1.1150/1.1225/1.1275.  Major bullish momentum is likely only if prices can break above the 1.1275 target of 1.1480. On the downside, support is seen at 1.09775 any violation below will drag the pair to 1.0935 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 1.1050 with a stop-loss at 1.09975 for a target price of 1.1150.