At the end of last week, President Trump said he would add a 30% tariff on goods from the EU. Because of this, the euro started lower at 1.1660 in the Tokyo market on Monday. But it quickly went back up to 1.1997. After that, the euro dropped again to 1.1654, then rose to 1.1697. In the New York market, the price was stopped again around 1.1695. This shows that 1.17 is a strong resistance level – it is hard for the euro to go higher than that.
The EU said it is thinking about a 72 billion euro retaliation against the U.S. Because of this, talks between the EU and the U.S. will likely be difficult for a while.
So, it will be hard for the euro to rise more. If the U.S. CPI result today is strong, the euro may go down further.
Expected EUR/USD Range: 1.1600 – 1.1700 USD
Note: This information does not guarantee profits. Please make your own decisions when trading.