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Chart of The Day – EUR/USD

The EUR/USD exchange rate is trading around 1.1719 on Monday, and despite seemingly positive industrial data, the eurozone is sending out worrying signals. The final reading of the PMI index for the manufacturing sector stood at 52.2 points in April, up from 51.6 a month earlier, which at first glance looks like a solid improvement. In reality, however, the rise in manufacturing activity is not driven by real demand, but by increased stockpiling by firms seeking to secure goods against further shortages and price rises resulting from the escalation of tensions in the Middle East. This is a seemingly positive result, which in fact says more about the fear of supply chain disruptions than about the actual strength of the European economy. The devil is in the details, and it is these details that are shaping the outlook for both growth and inflation in the eurozone.

Delivery delays have reached their worst level since July 2022, input cost inflation has risen to a 46-month high, and price pressures are increasingly being passed on to selling prices, marking the largest monthly jump since records began in 1997. As a result, the ECB faces a real dilemma: the data suggest a recovery, but leading indicators of producer sentiment and expectations merely confirm the growing risk of stagflation. For EUR/USD, this implies an environment of heightened uncertainty, in which the exchange rate may be prone to sharp movements depending on further signals from the Fed and the ECB, and any stronger US inflation data could push the pair back towards the support level at 1.1650.

On the EUR/USD daily chart, following a sharp rally to around 1.2060 at the start of the year, the exchange rate underwent a significant correction that brought prices down to lows around 1.1380, from where a rebound occurred.

Currently, the pair is trading at 1.1719, oscillating near the 50-day EMA (1.1681) and the 100-day EMA (1.1678), which together form a dynamic support zone, while the 200-day EMA at 1.1634 serves as another line of defense for the bulls. Bollinger Bands indicate narrowing volatility, with the upper band at 1.1771 and the lower band at 1.1669, signaling a potential breakout in the coming sessions. The RSI is hovering around the neutral level of 52, which does not provide a clear directional signal and suggests that the market is still looking for momentum for a decisive move above the resistance at 1.1800 or a deeper correction toward the aforementioned 200-day EMA support.

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EUR/GBP Price Forecasts: Euro remains vulnerable below 0.8640

  • EUR/GBP recovery attempt from 0.8620 lows remains limited below 0.8640.
  • The Pound is outperforming the Euro, with risk appetite subdued.
  • Euro bears remain in control, with the 2026 low near 0.8610 at a short distance.

The Euro (EUR) opens the week on a soft note against the British Pound (GBP). The pair shows moderate losses, as Friday’s upside attempt from the 0.8620 lows failed to find acceptance above a previous support area at 0.8640, which leaves the year-to-date low, at 0.8611, exposed

The Pound shows a slightly better performance than the Euro on a cautious start to the week, with all eyes on the Strait of Hormuz, after US President Donald Trump flagged a military operation to free vessels of neutral nations stranded in the critical waterway, but without providing further details.

The UK economic calendar is thin on Monday. In Europe, April’s final HCOB Manufacturing Purchasing Managers Index (PMI) is expected to confirm a moderate expansion in the sector’s activity, while the Sentix Index will provide details about investors’ confidence ahead of speeches by some European Central Bank (ECB) policymakers.

Technical Analysis: Previous support at 0.8640 is holding bulls

Chart Analysis EUR/GBP

EUR/GBP remains stalled below the confluence of a reverse trendline from late March highs and the area between 0.8630 and 0.8640, which supported bears on March 23, 24, and 26.

Technical indicators in 4-hour charts are in bearish territory. The Relative Strength Index (RSI) around 38 signals weak demand rather than oversold stress, while the Moving Average Convergence Divergence (MACD) histogram fluctuates around the zero line, hinting at sluggish momentum.

Failure to extend recovery past 0.8640 leaves the 2026 low, at 0.8611 (March 19 low), on the bears’ focus. Further down, the next target is the August 2025 low, at 0.8596. On the upside, a confirmation above 0.8640 would shift the focus towards the April 27 and 28 lows, around 0.8655, and the April 24 high, near 0.8685.

Euro Price Today

The table below shows the percentage change of Euro (EUR) against listed major currencies today. Euro was the strongest against the Australian Dollar.

USDEURGBPJPYCADAUDNZDCHF
USD-0.06%-0.01%-0.09%0.06%0.07%-0.13%-0.05%
EUR0.06%0.01%-0.04%0.12%0.14%-0.06%-0.01%
GBP0.00%-0.01%-0.06%0.11%0.12%-0.11%-0.01%
JPY0.09%0.04%0.06%0.12%0.11%-0.10%-0.02%
CAD-0.06%-0.12%-0.11%-0.12%-0.01%-0.22%-0.12%
AUD-0.07%-0.14%-0.12%-0.11%0.00%-0.24%-0.14%
NZD0.13%0.06%0.11%0.10%0.22%0.24%0.09%
CHF0.05%0.00%0.00%0.02%0.12%0.14%-0.09%

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Euro from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent EUR (base)/USD (quote).

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EUR/USD Price Forecast: Holds above 1.1700 as bullish potential seems intact

  • EUR/USD struggles to capitalize on a modest bullish gap at the start of a new week.
  • The technical setup favors bulls and backs the case for some upside in the near-term.
  • A break below the 1.1650-1.1645 confluence is needed to negate the positive bias.

The EUR/USD pair attracts some intraday sellers following a modest Asian session uptick to mid-1.1700s and fills a major part of a bullish gap at the start of a new week. Spot prices, however, manage to hold above the 1.1700 round figure, warranting some caution before positioning for an extension of Friday’s retracement slide from a one-and-a-half week top.

From a technical perspective, the EUR/USD pair holds a modest bullish bias as it trades above the 200-period Simple Moving Average (SMA) on the 4-hour chart, suggesting dips are being absorbed for now. Meanwhile, the Relative Strength Index (RSI) is near 53 points to mildly positive but not overstretched momentum, while the Moving Average Convergence Divergence (MACD) indicator remains slightly in positive territory. This hints that upside pressure is present but not yet impulsive.

However, Friday’s pullback makes it prudent to wait for a sustained strength and acceptance above the 1.1750 area, or the 23.6% Fibonacci retracement level of the March-April upswing, before positioning for further gains. A subsequent hurdle is aligned at the recent cycle high area at 1.1847.

On the downside, initial support is seen at the 38.2% retracement around 1.1692, followed by a key confluence zone formed by the 200-period SMA at 1.1648 and the 50.0% retracement at 1.1644. A deeper pullback could then target the 61.8% level at 1.1596, ahead of 1.1528 and 1.1441.

(The technical analysis of this story was written with the help of an AI tool.)

EUR/USD 4-hour chart

Chart Analysis EUR/USD
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EUR/USD falls to near 1.1700 as US to raise tariffs on EU vehicles

  • EUR/USD falls as Trump signals US tariffs on EU cars and trucks rising to 25% from 15%.
  • US Dollar trims daily losses as risk aversion rises on escalating Middle East tensions.
  • Trump plans escorting ships via Strait of Hormuz; Ebrahim Azizi warns US role violates ceasefire.

EUR/USD depreciates after opening at the bullish gap, remaining in the positive territory and trading around 1.1720 during the Asian hours on Monday. The pair declined as the Euro (EUR) faces challenges, which could be attributed to the recent comments from President Donald Trump, indicating the US will raise tariffs on European Union (EU) cars and trucks to 25% from 15% this week, citing alleged breaches of a trade deal.

Trump said in a social media post, warning EU-made vehicles would face higher duties unless production shifts to US plants, aiming to push carmakers to localize output. The European Commission rejected the claim, saying it is complying with last summer’s agreement and vowing to defend EU interests if Washington violates the deal.

The EUR/USD pair also loses ground as the US Dollar (USD) pares its daily losses amid increased risk aversion driven by escalating tensions in the Middle East. Bloomberg reported on Sunday that Donald Trump said the United States will begin guiding some neutral ships trapped in the Persian Gulf out through the Strait of Hormuz starting Monday.

Ebrahim Azizi, a former commander in Iran’s Islamic Revolutionary Guards Corps (IRGC) and current head of the parliamentary National Security and Foreign Policy Committee, said that any US interference in the new maritime regime of the Strait of Hormuz would be considered a violation of the ceasefire. He added that the Strait of Hormuz and the Persian Gulf are not a place for rhetoric.

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EUR/USD trims gains as fresh Trump tariff threats, Iran woes lift USD

  • Trump threatens to raise EU auto tariffs to 25% from 15%, weighing on the EUR/USD pair.
  • Trump says he isn’t happy about the latest proposal sent by Tehran, adding uncertainty and fueling safe-haven demand for the USD.
  • USD rebounds from two-week lows amid intensifying geopolitical risks.

The EUR/USD pair is trading near the 1.1730 level on Friday’s late American session, trimming almost all its intraday gains, after United States (US) President Donald Trump threatened to raise the tariff rate on European Union (EU) cars and trucks from 15% to 25% and said he isn’t happy with the latest proposal sent by Iran to end the war.

Iran passed a peace talks offer through Pakistan to try and strike a deal with the US, though the details and demands from Tehran remain unknown. US President Trump claimed that “we made strides in talks with Iran, but I’m not sure we’re going to get to a deal,” and added that he is not satisfied with the current proposal because Iran is asking for things “he is not comfortable agreeing with”.

When asked about potential missile strikes on Iran, US President Trump said: “Why would I tell you that?”, adding to the uncertainty. The heightened uncertainty over the fate of the latest proposal has supported the US Dollar (USD) as a safe haven, whichhas recovered from a two-week low.

Chart Analysis EUR/USD

Short-term technical analysis:

On the four-hour chart, EUR/USD trades at 1.1730, hovering between nearby moving averages and maintaining a broadly neutral bias. The pair holds above the 20-period Simple Moving Average (SMA) at 1.1713, which lends modest downside support, but it remains capped by the 100-period SMA at 1.1736 and the horizontal barrier at 1.1744. The Relative Strength Index around 53 hints at mildly positive momentum, yet the proximity of overhead levels suggests limited upside unless buyers can force a sustained break higher.

On the topside, immediate resistance is located at the 100-period SMA at 1.1736, followed by the horizontal hurdle at 1.1744. A clearance of these levels would open the way toward 1.1757 and then 1.1785. On the downside, initial support is seen at the nearby horizontal floor at 1.1729, with the 20-period SMA at 1.1713 reinforcing the underlying demand area. A break below this latter level would expose a deeper corrective phase in the short term.

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EUR/USD nears weekly highs at 1.1755 as the US Dollar falters

  • EUR/USD extends gains on Friday, approaching weekly highs, at 1.1755.
  • Another alleged Yen intervention has hit the US Dollar on a holiday-thinned market.
  • The Euro bounced up on Thursday amid hot Eurozone inflation and a hawkish hold by the ECB.

The Euro (EUR) has turned positive against a weaker US Dollar (USD) on Friday, and is trading at 1.1742 at the time of writing, a few pips short of the top of the weekly trading range, at 1.1755. An alleged intervention by Japanese authorities, presumably the second in the last two days, hit the USD/JPY earlier on Friday, hammering the Greenback in thinned Labour Day trading.

The USD/JPY dropped nearly 200 pips in a matter of seconds at the early European session, in a move that reverberated throughout the market, sending the US Dollar lower across the board. The EUR/USD, which hitherto was featuring moderate losses, resumed its positive trend from Thursday’s lows at 1.1655.

The pair regained lost ground on Thursday, as investors prioritised the hot Eurozone inflation figures over the weakening Gross Domestic Product (GDP) figures. Later on, the European Central Bank (ECB) delivered a “hawkish hold,” keeping interest rates unchanged but hinting at a rate hike in the near term.

The ECB’s stance was reaffirmed by the Bundesbank president and committee member, Joachim Nagel, who said on Friday that the baseline scenario entails a more restrictive monetary policy and flagged the possibility of a rate hike in June.

Meanwhile, the situation in the Middle East remains stalled. The US and Iran have continued exchanging threats, with the Strait of Hormuz entering its third month of blockade and no credible plan to reopen it at sight. Oil prices are above the key $100, with Brent Oil at $113.94 at the time of writing, a very painful level for Eurozone Crude-importing economies, which will, highly likely, weigh on the Euro in the long run.

Technical Analysis: EUR/USD keeps looking for direction around 1.1700

EUR/USD Chart Analysis

From a technical perspective, the EUR/USD remains trapped within a broadly 100-pip range, with support above 1.1650 holding bears and upside attempts limited below 1.1750.

Technical indicators on the 4-hour chart are showing an improving momentum. The Relative Strength Index (RSI) reaches the 60 level, and the Moving Average Convergence Divergence (MACD) is showing a widening green histogram, suggesting that the bullish momentum is gathering pace.

Bulls, however, would need to break the mentioned 1.1755 resistance (April 27 high) to confirm that the bearish correction from 1.1850 highs has been completed. Further up, the April 20 high near 1.1790 is likely to test the Euro’s recovery ahead of April’s peak, right below 1.1850.

Bears, on the other hand, are struggling to extend dips below a cluster of supports between 1.1675 and the April 8 intraday low, near 1.1645. A confirmation below here would clear the way to the 61.8% Fibonacci retracement of the early April rally, at 1.1580, and the April 2 and 3 low, near 1.1500.

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EUR/GBP flat lines above 0.8600 as ECB and BoE keep interest rates unchanged

  • EUR/GBP steadies near 0.8625 in Friday’s early European session. 
  • The European Central Bank kept interest rates on hold at its April meeting. 
  • The Bank of England left interest rates unchanged at 3.75% on Thursday.  

The EUR/GBP cross holds steady around 0.8625 during the early European session on Friday. The European Central Bank (ECB) and the Bank of England (BoE) warned they may need to raise interest rates in the coming months, as central banks grapple with the energy shock triggered by the war in the Middle East.

The ECB governing council opted to hold its benchmark deposit facility rate at 2% on Thursday. According to the statement, the central bank said the inflation outlook was largely unchanged. “The upside risks to inflation and the downside risks to growth have intensified.”

ECB President Christine Lagarde said the central bank’s governing council had discussed a rate rise this month “at length and in depth” before voting for a hold. However, policymakers would closely monitor the situation and take a data-dependent and meeting-by-meeting approach to determining their monetary policy stance.  

On the UK’s front, the Bank of England (BoE) held interest rates at 3.75% as uncertainty over the Iran war continues. BoE Governor Andrew Bailey said if price pressures triggered by the conflict proved to be severe, a “forceful tightening” would be required.

Bailey on Thursday played down fears of near-term rate hikes but added: “We’ll continue to monitor the situation and its impact on the UK economy very closely.”

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EUR/USD Price Holds onto gains near 1.1730

  • EUR/USD trades firmly near 1.1735 amid weakness in the US Dollar.
  • Investors await the ECB commentaries and the US ISM Manufacturing PMI data for April.
  • The US GDP growth remained at 2% on an annualized basis in the first quarter of the year.

The EUR/USD pair clings to Thursday’s gains near 1.1735 during the Asian trading session on Friday. The major currency pair reflects strength as the US Dollar (USD) holds onto the previous day’s losses, which were driven by suspected Japan’s intervention in forex markets.

During the press time, the US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, trades weakly near Thursday’s low around 98.00.

On Thursday, the US preliminary Q1 Gross Domestic Product (GDP) data arrived weaker than projected. The US Bureau of Economic Analysis (BEA) reported that the economy grew at an annualized pace of 2%, slower than 2.3% estimates.

Meanwhile, investors await the US ISM Manufacturing PMI data for April, which will be published at 14:00 GMT. The Manufacturing PMI is expected to arrive higher at 53.0 from the previous reading of 52.7.

During the Asian trade, the Euro (EUR) trades broadly firm, with investors awaiting commentaries from a slew of European Central Bank (ECB) officials, following the completion of the so-called quiet period after the monetary policy announcement on Thursday.

USD/JPY technical analysis

EUR/USD trades firmly at around 1.1735, holding a mildly bullish bias as it sits above the 20-period exponential moving average (EMA) at 1.1702 and between key Fibonacci retracement levels of the latest swing. The pair is hovering just under the 50.0% retracement at 1.1745, suggesting topside progress is slowing but not yet reversing, while the Relative Strength Index (RSI) around 55 hints at constructive, yet not overextended, upside momentum.

On the topside, immediate resistance is located at the 50.0% Fibonacci retracement at 1.1745, followed by the 61.8% level at 1.1825, with further barriers at 1.1938 and 1.2082. On the downside, initial support is provided by the 20-period EMA at 1.1702, ahead of the 38.2% Fibonacci level at 1.1666; a deeper pullback would expose the 23.6% retracement at 1.1567, with the cycle low near 1.1408 acting as a more distant structural floor.