EURUSD has fallen below the swing area of 1.07609 to 1.07767, influenced by tariff news and inflation worries, alongside remarks from Fed’s Musalem. This decline also drops the price beneath the 100-hour moving average at 1.0812, enhancing bearish momentum.
The pair approaches a technical zone around 1.0726–1.0730, which includes the 200-day moving average and the 38.2% retracement of the rise from the February 28 low. This support may slow the downward trend and draw in buyers, creating a competitive atmosphere between bulls and bears.
Market Impact Of Tariff News
The evolving tariff situation is likely to affect the market’s response. Technical levels provide a framework for understanding the market dynamics. Sellers currently hold a short-term advantage, yet they must push prices below the 200-day moving average and the 38.2% retracement to maintain control.
For sellers aiming for further declines, the risk level is identified at 1.07767.
The break below the swing area, which had been acting as a support zone, indicates that downward pressure has gained strength. The move below the 100-hour moving average reinforces this, showing that sellers are increasingly dominant in the short term. Inflation concerns and tariff-related developments have added to the pressure, accelerating the recent losses in the pair.
Now, the price is nearing a key support zone, where the 200-day moving average and the 38.2% retracement level converge. These levels are widely tracked by traders and often act as areas where price reactions occur. If bears manage to push the price through this region, conviction in further downside movement could strengthen. However, if buyers emerge in enough numbers, a temporary floor may form, leading to a potential bounce.
Key Technical Levels To Watch
The ongoing trade policy uncertainty remains a key factor. If markets perceive that tariff measures could impact economic growth or inflation trends, shifts in sentiment may follow quickly. This adds to the complexity of the current environment, where technical signals must be considered alongside external pressures.
At present, sellers hold the upper hand. To maintain that advantage, keeping prices below both the 200-day moving average and the 38.2% retracement will be necessary. Any failure to do so could weaken selling conviction and open the door for a corrective move higher. Meanwhile, traders looking to defend against further losses may focus on 1.07767 as a pivotal level. As long as the price remains below this mark, downward objectives remain in play.
