Despite USD weakness, traders remain cautious about aggressively buying the euro due to rising trade tensions between the U.S. and the European Union (EU). The EU faces 25% tariffs on steel, aluminum, and cars, with reciprocal duties of 20% on most other goods. In response, the European Commission is set to announce a list of U.S. products targeted for additional tariffs. These developments could bolster demand for the safe-haven USD, potentially capping further gains in EUR/USD.
Key Data and Market Drivers
Traders will closely monitor upcoming economic releases, including:
- German Industrial Production & Trade Balance Data
- Eurozone Sentix Investor Confidence Index
However, the primary market focus will remain on trade-related developments, which could shape broader risk sentiment and impact USD demand, influencing short-term price action in EUR/USD.
EUR/USD Daily Technical Analysis for April 7
On the daily chart, EUR/USD remains above all key moving averages, with the 20-day SMA maintaining a bullish slope above longer-term indicators, currently around 1.0860. Despite an intraday pullback, technical indicators remain in positive territory, suggesting limited downside risk for now.
Support Levels: 1.0900, 1.0860, 1.0800
Resistance Levels: 1.1000, 1.1050, 1.1100, 1.1145
A decisive move above 1.1050 could open the door for further gains, while a break below 1.0900 may weaken the bullish outlook. For now, the battle around 1.1000 remains key to the pair’s next direction..
