EUR/USD up 0.21% to 1.1385 as trade tensions between the US and China continue to pressure the dollar during holiday-thinned trading. Investors are closely watching the currency pair’s approach toward the critical 1.14 level, but it lacks the strength to break this elusive mark.
EUR/USD Up in Holiday-Thinned Trading as Markets React to Escalating Trade Tensions
EUR/USD growth persists even during reduced Good Friday trading volumes, with the Euro strengthening against a weakening US Dollar. The primary catalyst for the EUR/USD up move remains the White House’s aggressive trade stance.
Notably, the new levies target Chinese ships arriving at American ports. These measures threaten to disrupt global shipping routes and intensify the already strained US-China trade relationship.
The EUR/USD upward movement gained additional support following reports that President Trump has expressed frustration with Federal Reserve Chair Jerome Powell. White House Senior Adviser Kevin Hassett confirmed that Trump is “studying whether firing Fed’s Powell is an option,” raising serious concerns about central bank independence.
The US Dollar Index (DXY) reflects this weakness, falling 0.09% to 99.31 as traders shift away from dollar-denominated assets.
Meanwhile, European Central Bank (ECB) member Madis Müller has provided supportive comments for the Euro. He noted that declining energy prices and tariffs justified the ECB’s recent rate cut decision.
Müller emphasized that key indicators for EUR/USD movements are trending positively. Besides, he warned that growing economic fragmentation could push prices up.
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Will EUR/USD Up Movement Continue? Price Forecast and Technical Outlook
The EUR/USD pattern shows the pair trading near the week’s high of 1.1400, with technical indicators suggesting further gains are possible. Currency analysts watching for EUR/USD up signals note that a decisive break above 1.1400 could trigger additional buying interest.
Key resistance levels include:
- The April 11 high was at 1.1473
- The February 2022 peak at 1.1498
- The psychologically significant 1.1500 level
Technical traders monitoring the EUR/USD trend should remain aware that holiday-thinned liquidity conditions can sometimes produce exaggerated price movements. However, the overall sentiment remains bullish as the Euro continues to capitalize on dollar weakness.
For investors looking to benefit from the EUR/USD up trend, we recommend closely monitoring developments in US-China trade and issues related to the independence of the Federal Reserve in the upcoming trading sessions.
