EUR/USD rose for the second consecutive day and is approaching 1.1819. Sentiment towards the US dollar remains under pressure amid uncertainty over US tariff policy, which is eroding confidence in the American currency.
US Trade Representative Jamieson Greer stated that tariff rates for individual countries could be increased from the current 10% to 15% or higher, but did not specify the criteria for such changes.
President Donald Trump adopted a measured tone on tariffs in his annual address to Congress. At the same time, he made it clear that he would not change his strategy, despite the Supreme Court’s decision to cancel his large-scale “reciprocal” duties.
In terms of monetary policy, the market expects the Fed to keep interest rates unchanged at its next meeting.
Additional caution stems from ongoing negotiations between the US and Iran on the nuclear program, the next round of which is taking place today in Geneva.
Technical Analysis
On the H4 chart, EUR/USD is forming a consolidation range around 1.1818. An upward move towards 1.1862 appears likely, with scope for an extension towards 1.1888. Technically, this scenario is supported by the MACD indicator: its signal line remains above zero and is pointing higher, reflecting sustained bullish momentum.
On the H1 chart, the pair is developing the next upward wave towards 1.1860. After reaching this level, a pullback towards 1.1818 could follow, before a renewed advance towards 1.1888. Technically, this scenario is supported by the Stochastic oscillator, with its signal line above 50 and rising towards 80.
Conclusion
In summary, EUR/USD continues its gradual recovery as persistent uncertainty surrounding US tariff policy weighs on dollar sentiment. While Trump’s Congressional address offered no clarity on the trade front, and ongoing US-Iran negotiations add a layer of geopolitical caution, the technical picture remains constructive. The pair is building momentum within a consolidation range, with upside targets at 1.1862 and 1.1888. Both MACD and Stochastic indicators support the bullish bias, suggesting further gains are likely in the near term. The key level to watch is 1.1818 – holding above this support keeps the upward trajectory intact, while a break below could signal a temporary pause. For now, the path of least resistance appears higher.
