As traders raised their predictions for further ECB easing this year due to the anticipated impact on the European economy, Trump’s declaration of 25% tariffs on car imports yesterday impacted on the euro. As the surge after the German defence expenditure announcement finally began to fade, the EU-US yield differentials have been shifting further in favour of the US in recent weeks.
We can observe that a trendline has restricted the EURUSD pair’s upward on the one-hour chart. With a clear danger just above the trendline, the sellers will probably keep relying on it to drive into new lows because this appears to be a textbook decline. However, in order to begin aiming for new highs, the purchasers will want to see the price break higher.
