EUR/USD faces pressure on Tuesday after trimming gains below the 1.1650 level. The pair initially saw an uptick, but the US Dollar has been regaining strength after Fed Governor Lisa Cook’s comments. Despite threats from US President Donald Trump to remove her from the Federal Reserve Board of Governors, Cook stood firm, signaling that she would not resign from her position. This has sparked concerns regarding the independence of the Federal Reserve, adding volatility to USD dynamics.
EUR/USD Technical Overview:
- Resistance: 1.1700 (psychological level)
- Support: 1.1600 (next support level)
The market’s focus shifted following Trump’s threat to impose tariffs on Chinese goods, and his ongoing efforts to exert influence over the Fed’s policies. Trump’s threat to impose tariffs on China, as well as his targeting of Fed Governor Cook, has kept the market on edge.
The European Central Bank (ECB) has given a signal that they may pause monetary easing as they focus on Eurozone labor market strength. This has provided some underlying support to the Euro against the US Dollar.
On the technical side, the Euro remains above its key support levels. The next resistance is seen near the 1.1700 level. A break above this could trigger further gains, but volatility remains high, especially with the upcoming ECB and US economic data releases.
Traders will continue to monitor any updates from the Fed’s standpoint and any geopolitical developments that could influence the broader market sentiment.
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