EUR/USD Current price: 1.0786
- European Central Bank officials delivered dovish comments, weighing on the EUR.
- United States Durable Goods Orders rose a modest 0.9% in February.
- EUR/USD turned bearish in the near term, although the downward momentum is limited.
The EUR/USD pair extends its downward route on Wednesday, trading in the 1.0780 region early in the American session. Markets remain cautious amid United States (US) President Donald Trump’s latest tariff announcements, and ahead of a slew of Federal Reserve (Fed) speakers.
Earlier in the week, investors were optimistic that Trump’s reciprocal tariffs coming into effect on April 2 would be less widespread than anticipated, but the US President made it clear on Tuesday that levies would probably be “more lenient than reciprocal,” and more widespread than earlier estimated.
In the meantime, the Euro (EUR) is unable to advance amid dovish comments from European Central Bank (ECB) officials. On the one hand, policymaker Fabio Panetta said on Wednesday, the central bank “must remain pragmatic and data-driven in setting the policy rate,” adding the ECB should now focus more on inflation expectations than the estimated neutral level in setting rates.
Also, Bank of France head Francois Villeroy de Galhau noted that US tariffs could have a limited impact on European inflation but added that they could reduce the Eurozone Gross Domestic Product (GDP) growth by 0.3% in a full year.
Meanwhile, the US published February Durable Goods Orders, which rose by 0.9%, beating the -1% expected but shrinking from the previous 3.3%.
EUR/USD short-term technical outlook
From a technical point of view, the daily chart for the EUR/USD pair shows it trades in the red for a sixth consecutive day, while it keeps posting lower lows. The same chart shows the price is pressuring a still bullish 20 Simple Moving Average (SMA), which remains above directionless 100 and 200 SMAs. Technical indicators, in the meantime, head lower with uneven strength, still holding above their midlines, yet reflecting increased selling interest.
In the near term, and according to the 4-hour chart, the EUR/USD pair is confined to a tight consolidative range, while developing below the 20 and 100 SMAs. The shorter one gains downward traction below the longer one, adding to the bearish case. Finally, technical indicators turned south within negative levels, although without enough strength to confirm a steeper decline.
Support levels: 1.0745 1.0710 1.0675
Resistance levels: 10830 1.0860 1.0905
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Gold trades near record-high, stays within a touching distance of $3,100
Gold clings to daily gains and trades near the record-high it set above $3,080 earlier in the day. Although the data from the US showed that core PCE inflation rose at a stronger pace than expected in February, it failed to boost the USD.
EUR/USD turns positive above 1.0800
The loss of momentum in the US Dollar allows some recovery in the risk-associated universe on Friday, encouraging EUR/USD to regain the 1.0800 barrier and beyond, or daily tops.
GBP/USD picks up pace and retests 1.2960
GBP/USD now capitalises on the Greenback's knee-jerk and advances to the area of daily peaks in the 1.2960-1.2970 band, helped at the same time by auspicious results from UK Retail Sales.
Donald Trump’s tariff policies set to increase market uncertainty and risk-off sentiment
US President Donald Trump’s tariff policies are expected to escalate market uncertainty and risk-off sentiment, with the Kobeissi Letter’s post on X this week cautioning that while markets may view the April 2 tariffs as the "end of uncertainty," it anticipates increased volatility.
US: Trump's 'Liberation day' – What to expect?
Trump has so far enacted tariff changes that have lifted the trade-weighted average tariff rate on all US imports by around 5.5-6.0%-points. While re-rerouting of trade will decrease the effectiveness of tariffs over time, the current level is already close to the highest since the second world war.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.