EUR/USD drops as US Dollar gains while US-China trade uncertainty escalates
- EUR/USD faces slight pressure above 1.1400 as the US Dollar steadies, with investors seeking clarity on the US-China trade outlook.
- US Treasury Secretary Bessent has put the responsibility for the US-China trade progress on Beijing.
- ECB officials support the need for more interest rate cuts.
of the major currency pair remains bullish as the 20-week Exponential Moving Average (EMA) is sloping higher around 1.0890.
The 14-week Relative Strength Index (RSI) climbs to overbought levels above 70.00 in the weekly chart, which indicates a strong bullish momentum, but chances of some correction cannot be ruled out.
Looking up, the psychological level of 1.1500 will be the major resistance for the pair. Conversely, the July 2023 high of 1.1276 will be a key support for the Euro bulls.
Economic Indicator
Harmonized Index of Consumer Prices (YoY)
The Harmonized Index of Consumer Prices (HICP) measures changes in the prices of a representative basket of goods and services in the European Monetary Union. The HICP, released by Eurostat on a monthly basis, is harmonized because the same methodology is used across all member states and their contribution is weighted. The YoY reading compares prices in the reference month to a year earlier. Generally, a high reading is seen as bullish for the Euro (EUR), while a low reading is seen as bearish.
Next release:
Fri May 02, 2025 09:00 (Prel)
Frequency:
Monthly
Consensus:
2.1%
Previous:
2.2%
Source:
Eurostat
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