EURUSD Amid tariff chaos and political uncertaintyEURUSD Amid tariff chaos and political uncertainty
The EURUSD pair has reached a critical point due to the turmoil caused by Trump's tariffs.
EURUSD climbed unexpectedly to the top.
From a fundamental standpoint, the EUR outperformed across the board yesterday. This came after European leaders, including Ukrainian President Volodymyr Zelenskyy, agreed to prepare a Ukraine peace plan at a high-stakes summit in London over the weekend, alongside UK Prime Minister Keir Starmer.
On the US front, President Trump suspended the delivery of military aid to Ukraine yesterday and reiterated 25% tariffs on Mexico and Canada, and 20% tariffs on Chinese imports, which will be effective today according to official sources. In response, China announced additional 15% tariffs on US imports, including chicken, wheat, corn, and cotton.
All this uncertainty is contributing to USD weakness ahead of a potential trade war, with unknown consequences for the US economy in the short and medium term.
Technical Analysis: If EURUSD moves above the structure zone at 1.0530, the odds are that it can begin another, and bigger, bullish wave that could push the price even higher.
If the price holds below 1.0530 the odds are that it can move down again to 1.0350
However the price is breaking out of the pattern thus rising the odds for the bullish movement.
You may find more details in the chart!
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