The EUR/USD pair fell to intraday lows near 1.1470 on Tuesday as the U.S. dollar regained ground. This comes after sharp criticism from former President Donald Trump targeting Federal Reserve Chairman Jerome Powell, which injected fresh uncertainty into markets.
Trump accused the Fed of inaction, claiming it’s “too late” to respond to slowing economic conditions. He argued that maintaining high interest rates despite “virtually no inflation” risks triggering a downturn. His remarks renewed speculation about the Fed’s future path and challenged the perception of its independence—factors that often stir volatility in the foreign exchange market.
The broader tone in global markets remained cautious. Equity indexes in Europe and Asia traded mostly lower following Wall Street’s decline on Monday. U.S. futures stayed flat early Tuesday, with no strong rebound in sight. In this risk-averse backdrop, dollar demand modestly recovered, weighing on EUR/USD after Monday’s rally above the 1.1500 level.
EUR/USD Technical Signals Mixed
From a technical standpoint, EUR/USD is correcting overbought conditions without showing signs of a trend reversal. On the daily chart, indicators are easing from peak levels but remain within bullish territory. The pair continues to trade well above key moving averages, particularly the 20-day Simple Moving Average (SMA), which keeps an upward slope and offers dynamic support.
On the 4-hour chart, a mild retracement is underway:
- Support levels: 1.1440, 1.1405, 1.1360
- Resistance levels: 1.1510, 1.1550, 1.1595
- Short-term bias: Neutral to bullish, with corrective pullbacks expected
While technical momentum indicators tilt lower, they remain above midlines—signaling consolidation rather than collapse.
Traders Eye Upcoming Economic Data
Market attention is now shifting to macroeconomic catalysts. The Eurozone is set to release a preliminary estimate of April’s Consumer Confidence, which may influence euro sentiment. In the U.S., the Richmond Fed Manufacturing Index is on deck, alongside several Fed and ECB speakers expected to weigh in on policy.
Key themes influencing EUR/USD going forward:
- Monetary policy divergence between the Fed and ECB
- Geopolitical tensions and trade negotiations
- Investor sentiment toward risk assets
Until clearer signals emerge, EUR/USD may remain rangebound, with bulls seeking a break above 1.1510 and bears eyeing a test of the 1.1440 zone.
The short-term pullback in EUR/USD reflects profit-taking and renewed USD strength, but broader market uncertainty and technical support suggest downside may be limited—for now.
Sources & Methodology
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