Under pressure on the day – OCBC

Euro (EUR) continued to trade under pressure on tariff concerns – be it universal tariffs, reciprocal tariffs or tariffs on European autos. EUR was last at 1.0325 levels, OCBC’s FX analysts Frances Cheung and Christopher Wong note.

Bullish momentum on daily chart fades

“Last week, Trump told the BBC that tariffs on EU goods imported into the US could happen ‘pretty soon’, although he would not give a timeline. He added that ‘They don’t take our cars, they don’t take our farm products, they take almost nothing and we take everything from them.”

“Millions of cars, tremendous amounts of food and farm products’. Over the weekend, there were reports that EU is considering to lower import tariff on American cars closer to the US rate of 2.5%, from current 10%. That said, the uncertainty on tariffs may still weigh on EUR for now.”
“Bullish momentum on daily chart faded while RSI fell. Risks to the downside. Support at 1.0240, 1.0140/80 levels (recent low). Resistance at 1.0360 (21 DMA), 1.0410 (50 DMA).”