The EUR/USD pair experienced a tumultuous session on Monday, fluctuating between the 1.1400 and 1.1300 levels before settling in the middle of this range. The US Dollar continues to weaken in response to the Trump administration’s shifting stance on tariffs, but investor sentiment remains cautious due to ongoing concerns about trade tensions.
Looking ahead, Tuesday will see the release of several European mid-tier sentiment indicators, with US Retail Sales data set for Wednesday. However, the key focus for EUR/USD this week will be the European Central Bank’s (ECB) rate decision on Thursday.
Markets are largely expecting the ECB to implement another quarter-point rate cut as policymakers prepare for the economic repercussions of the Trump administration’s unpredictable tariff policies.
EUR/USD Price Outlook
EUR/USD has struggled with inconsistent momentum since breaking the 200-day Exponential Moving Average (EMA) at 1.0650 in early March, showing sporadic bullish progress. While the technical bias remains positive for now, technical indicators are starting to signal overbought conditions, suggesting potential caution for future price movements.
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