EUR/USD Shows Cautious Bullishness Amid Trade Tensions – OCBC

EUR/USD Faces Mixed Signals as Bulls Show Restraint – OCBC

The euro (EUR) experienced volatile trading last Friday, initially falling after US President Trump threatened a 50% tariff on EU goods, but then recovering as the US dollar weakened broadly. According to OCBC FX strategists Frances Cheung and Christopher Wong, EUR/USD last traded around 1.1379, reflecting cautious optimism.

Trade Talks and Market Sentiment

EU Trade Commissioner Maroš Šefčovič emphasized the European Union’s commitment to a trade agreement based on respect rather than threats. Although talks have been slow, the EU remains eager to reach a mutually beneficial deal with the US. President Trump’s frustration led to his initial plan to impose tariffs on June 1, which was later postponed to July 9.

Technical Outlook

The daily chart shows bearish momentum easing as the Relative Strength Index (RSI) approached near-overbought levels, suggesting moderate upside potential. Resistance is expected at the 1.1420-1.1430 zone, with a decisive break potentially targeting 1.1570, the recent high.

Summary:
EUR/USD showed volatility amid tariff threats and US dollar weakness. OCBC notes cautious bullish momentum with resistance near 1.1420 and 1.1570, reflecting balanced risks.