The tariffs were stricter than expected, and concerns about the global economy grew, leading to a global stock market drop. As a result, US government bonds, seen as a safe asset, were bought, and interest rates fell, causing the dollar to weaken against many currencies.
It was revealed that a 20% tariff would be placed on the EU, and the selling of the dollar quickly gained strength. The Euro rose above the high of 1.09 in March, reaching a high of 1.1145, the highest since October of last year. There was a temporary pause for profit-taking, but the price stopped falling just before hitting 1.11.
There are concerns that the trade war could slow down the European economy, which makes it likely that the European Central Bank (ECB) will continue to lower interest rates. However, the current dollar selling trend is expected to continue.
That said, the 1.12 level is a high from last year, and the ceiling might be approaching soon.
EUR/USD Expected Range: 1.1200 to 1.0990 (38.2%)
Note: The above information does not guarantee profit. Please make your own decisions when trading.