Greenback Weak point Presents Alternatives for Traders :: InvestMacro

By RoboForex Analytical Division

EUR/USD rose for the second consecutive day and is approaching 1.1819. Sentiment in the direction of the US greenback stays underneath stress amid uncertainty over US tariff coverage, which is eroding confidence within the American forex.

US Commerce Consultant Jamieson Greer said that tariff charges for particular person nations could possibly be elevated from the present 10% to fifteen% or increased, however didn’t specify the standards for such adjustments.

President Donald Trump adopted a measured tone on tariffs in his annual handle to Congress. On the similar time, he made it clear that he wouldn’t change his technique, regardless of the Supreme Court docket’s resolution to cancel his large-scale “reciprocal” duties.

By way of financial coverage, the market expects the Fed to maintain rates of interest unchanged at its subsequent assembly.

Further warning stems from ongoing negotiations between the US and Iran on the nuclear program, the following spherical of which is happening in the present day in Geneva.

Technical Evaluation

On the H4 chart, EUR/USD is forming a consolidation vary round 1.1818. An upward transfer in the direction of 1.1862 seems probably, with scope for an extension in the direction of 1.1888. Technically, this state of affairs is supported by the MACD indicator: its sign line stays above zero and is pointing increased, reflecting sustained bullish momentum.

On the H1 chart, the pair is creating the following upward wave in the direction of 1.1860. After reaching this stage, a pullback in the direction of 1.1818 might observe, earlier than a renewed advance in the direction of 1.1888. Technically, this state of affairs is supported by the Stochastic oscillator, with its sign line above 50 and rising in the direction of 80.

Conclusion

In abstract, EUR/USD continues its gradual restoration as persistent uncertainty surrounding US tariff coverage weighs on greenback sentiment. Whereas Trump’s Congressional handle provided no readability on the commerce entrance, and ongoing US-Iran negotiations add a layer of geopolitical warning, the technical image stays constructive. The pair is constructing momentum inside a consolidation vary, with upside targets at 1.1862 and 1.1888. Each MACD and Stochastic indicators assist the bullish bias, suggesting additional features are probably within the close to time period. The important thing stage to observe is 1.1818 – holding above this assist retains the upward trajectory intact, whereas a break beneath might sign a short lived pause. For now, the trail of least resistance seems increased.

Disclaimer

Any forecasts contained herein are based mostly on the writer’s specific opinion. This evaluation might not be handled as buying and selling recommendation. RoboForex bears no accountability for buying and selling outcomes based mostly on buying and selling suggestions and opinions contained herein.