The EUR/USD currency pair remained relatively stable above the 1.0300 mark on Monday. This comes as the pair faces pressure from a robust US Dollar, strengthened by US President Donald Trump's recent announcement of new tariffs. Trump declared a 25% tariff on all steel and aluminum imports, causing market reactions and potentially reshaping trade dynamics.
As the trading week begins, the EUR/USD pair has filled its initial gap, hovering around the 1.0310 level ahead of the American market opening. The currency pair appears vulnerable, with the US Dollar maintaining its strength following Trump's tariff threats. The EUR/USD is currently trading below all its moving averages, indicating bearish sentiment in the market.
The technical outlook for the EUR/USD pair shows that both the 100 and 200 Simple Moving Averages (SMAs) are trending downward. This indicates a persistent bearish trend. Additionally, the 20 SMA is providing dynamic resistance at 1.0380, further challenging any upward momentum for the pair.
The pair's current positioning suggests it is at risk of retesting the January monthly low of 1.0177. This risk is exacerbated by the US Dollar's strong opening for a second consecutive week. During Asian trading hours, the EUR/USD pair fell to an intraday low of 1.0317, highlighting its vulnerability.
The pair continues to develop below all its moving averages, which are confined to a tight 50-pip range. Technical indicators have turned flat well below their midlines, following a correction from oversold conditions. These indicators point to a lack of upward momentum and suggest continued pressure on the EUR/USD pair.
In a noteworthy event, European Central Bank (ECB) President Christine Lagarde is scheduled to speak about the ECB Annual Report at the European Parliament during American trading hours. Her comments could influence market sentiment and potentially impact the EUR/USD pair.
On the other hand, the US economic calendar offers little until Wednesday, when the country will release the January Consumer Price Index (CPI). This lack of immediate economic data may leave market participants focusing on geopolitical developments and potential comments from key economic figures.