The euro is trading steady against the US dollar today amid concerns over US-EU trade relations. Investors are cautious as they await clarity on upcoming US tariff measures. The European Union has announced progress towards a trade agreement with the United States.
The agreement aims to prevent a significant escalation in tariffs. It proposes a comprehensive 10% tariff on many goods, with reduced rates for key sectors such as pharmaceuticals, alcohol, semiconductors, and commercial aircraft. In response to President Trump’s metal tariffs, the EU is also preparing retaliatory measures on US products.
These may include export controls and restrictions on US access to public contracts. Commerce Secretary Howard Lutnick has confirmed the postponement of the broader US tariff package from July 9 to August 1. Market expectations are leaning towards one more interest rate cut from the European Central Bank this year.
Euro steadies amid trade concerns
Traders should exercise caution when buying EUR/USD at higher levels. Look for stronger selling opportunities without taking excessive risks.
The Euro is approaching its 2021 high. The trend remains bullish based on the daily timeframe chart. The 1.2000 psychological resistance is a key target, provided the bulls move steadily above the 1.1810 mark.
The 14-day RSI (Relative Strength Index) is at 65, indicating potential for further gains before hitting overbought territory. The MACD (Moving Average Convergence Divergence) indicator is also bullish. On the downside, breaking the upward trend would require a move towards support levels at 1.1650 and 1.1570.
Today’s EUR/USD trading is primarily focused on US trade policies, alongside the European and French trade balance figures due this morning.