The Euro (EUR) has declined for three consecutive sessions, currently trading at 1.0834. Analysts note the risks are trending downwards, influenced by the recent appreciation of the Euro and pending tariff discussions set for 2 April.
There are positive factors that might support the Euro, such as Germany’s spending plans and prospects of a peace deal in Ukraine. However, potential tariffs on European goods could lead to fluctuations; the market may view small pullbacks as opportunities to buy, especially with indicators suggesting potential upward movements.
Technical Analysis And Key Levels
The daily chart indicates waning bullish momentum, with important support levels identified at 1.08 and 1.0700/20. Resistance is found at 1.0950/70 and 1.1020.
The last few trading sessions have seen the Euro lose ground, now positioned around 1.0834. Analysts have pointed out that downside risks are accumulating, particularly after recent strength in the currency, while traders are also bracing for tariff talks scheduled for 2 April. That meeting will be watched closely, as any unfavourable outcomes regarding European exports could drag the currency lower.
On the other hand, there are aspects that could help limit losses. Germany’s proposed spending plans, if seen as stimulative enough, may improve sentiment. Additionally, progress towards a peace agreement in Ukraine would support stability in the region, reducing uncertainty that tends to weigh on the common currency.
However, the bigger concern at this stage appears to be external trade policies. If tariffs on European goods become a reality, that could unsettle markets, introducing sudden moves in the exchange rate. Short-lived recoveries might still bring in buyers, particularly since technical indicators suggest that upward moves have not been entirely ruled out.
Market Strategy And Outlook
Looking at the charts, any bullish momentum that existed earlier has weakened, suggesting that traders are becoming hesitant. Support is visible at 1.08, with a more solid floor near 1.0700–1.0720, where stronger buying interest could emerge. As for resistance, barriers stand at 1.0950–1.0970 and then around 1.1020, which means upward movement may meet some difficulty at these points.
Those in derivative markets should take note of the current setup. With downside pressures building but potential positive developments lurking in the background, trading strategies should remain flexible. Key levels on the chart provide guidance for entries and exits, while external factors such as tariffs and geopolitical events could add extra volatility. Keeping an eye on upcoming negotiations and adjusting positions accordingly will be necessary over the next few weeks.
