Last week, European Central Bank (ECB) Vice President De Guindos said that if the euro rises above 1.20 dollars, it will be hard for the central bank to respond. Because of this, the recent high of 1.1829 (on July 1) is now seen as a strong resistance level.
Talks between the U.S. and EU about tariffs are not going well. On the 12th, President Trump said he would place a 30% tariff on EU goods. This could cause the euro to move wildly this week.
If the EU answers with its own tariffs, the euro may fall even more.
However, worries about inflation in Europe are still strong, so it is less likely the European Central Bank will cut interest rates again. Also, many investors still see the euro as a good choice instead of the U.S. dollar. So, if the euro drops suddenly, some people may buy it again.
This week’s EUR/USD expected range: 1.1600 – 1.1780
Note: This information does not guarantee profits. Please make your own decisions when trading.