EUR/USD Analysis Summary Today
- The overall Trend: Upward.
- Today's Euro-Dollar Support Levels: 1.1290 – 1.1200 – 1.1130.
- Today's Euro-Dollar Resistance Levels: 1.1385 – 1.1460 – 1.1500.
EUR/USD Trading Signals:
- Buy Euro-Dollar from the 1.1240 support level with a target of 1.1420 and a stop-loss of 1.1160.
- Sell Euro-Dollar from the 1.1420 resistance level with a target of 1.1200 and a stop-loss of 1.1500.
EUR/USD Technical Analysis Today:
For two consecutive days, the EUR/USD pair has been subject to selling pressure, pushing it towards the 1.1295 level at the time of writing. This marks a surrender of its recent upward rebound gains, which had reached the 1.1418 resistance level. Currency traders are cautiously awaiting the future of trade talks between the United States and the European Union concerning tariffs. A failure in these talks would be a new setback for the Euro. Additionally, currency investors today will react to the content of the latest Federal Reserve meeting minutes, which will be released at 9:00 PM EEST. Signals from these minutes will influence trader sentiment towards the US dollar and the future of the Fed's policies amidst President Trump's disruptive policies.
Top Forex Brokers
Trading Tips:
The Euro-Dollar pair will remain in a narrow range until influenced by the results of key US economic releases and the future of the US-European trade dispute.
Amid a series of events affecting the currency market, US President Trump implemented a new shift in tariff policy, backing down from his threat on Friday to impose 50% tariffs on European Union exports to the United States starting June 1. As a result, the EUR/USD exchange rate jumped to a four-week high, just below 1.1420, before falling back down. Trump had backed down on his threat on June 1, agreeing to postpone the implementation of the tariffs until July 9.
Meanwhile, this returns the European Union to its previous status, where reciprocal tariffs were set to be imposed on most countries on July 9, following a 90-day delay from April 9. The Eurozone economy could have suffered significant damage if the June 1 tariffs had gone into effect, so the postponement brought a sense of relief.
Overall, there remains a significant element of uncertainty regarding US tariff policy.
On the technical side, based on performance across licensed trading platforms, EUR/USD is trading on the daily chart in an upward rebound pattern. If bears succeed in breaking through the support levels of 1.1220 and 1.1160, it will be a boost for bears to begin controlling the currency pair's direction. The 14-day RSI is currently trending downward and has not approached the midline, supporting bulls in their push back higher. Meanwhile, the MACD indicator lines remain higher.
At the same time, a break of the 1.1400 resistance will remain important for EUR/USD bulls, preparing for stronger gains.
Will the Euro Replace the Dollar in the Future?
According to currency analysts' expectations, it seems unlikely that the Euro will replace the US dollar as the dominant global currency. According to currency experts, the dollar's dominance stems from its role in cross-border transactions. The Euro almost challenged the US dollar in this regard in 2017 when Emmanuel Macron was elected President of France. At that time, Macron campaigned for greater integration in the Eurozone. This reduced the risks associated with the Euro for investors, but disappointment quickly returned after the election.
Overall, it's clear that a currency exposed to the risk of a Eurozone breakup finds it difficult to establish itself as an intermediary currency. Decisively, this means that replacing the US dollar will be challenging.
Ready to trade our Forex daily forecast? We’ve shortlisted the best currency trading platforms in the industry for you.