EUR/USD Technical Analysis April 4, 2025
Current Price Levels and Technical Indicators:
As of 7:00 GMT on April 4, 2025, the EUR/USD pair is trading at approximately 1.1063.
Relative Strength Index (RSI): The RSI has climbed past 70, entering the overbought region, suggesting that the pair may be overextended.
Moving Averages: The pair has soared past all its moving averages, with a bullish 20 SMA about to cross a flat 100 SMA, both converging around 1.0850.
Support and Resistance Levels:
Support Levels: Immediate support is observed at 1.1040, followed by 1.1000 and 1.0960.
Resistance Levels: Resistance is noted at 1.1145, with subsequent levels at 1.1190 and 1.1235.
Fundamental Factors:
The recent surge in EUR/USD is largely attributed to the announcement of significant tariffs by U.S. President Donald Trump. On April 2, 2025, President Trump introduced sweeping new tariffs, including a 10% baseline duty on all imports and higher rates for key partners—20% for the EU and 34% for China—set to take effect in early April.
These measures have led to a sharp decline in the U.S. dollar, with the dollar dropping 1.9% against a basket of currencies, marking its worst single-day decline since 2022.
European Central Bank officials have expressed concerns that these tariffs could undermine global economic stability, potentially leading to reduced demand for eurozone exports and impacting growth and inflation.
Conclusion:
The EUR/USD pair has experienced a significant rally, driven by recent U.S. tariff announcements and the resultant weakening of the U.S. dollar. Technical indicators suggest that the pair is in overbought territory, indicating potential consolidation or a corrective pullback in the near term. Traders should monitor upcoming economic events and geopolitical developments closely, as they are likely to influence the pair’s direction.
GBP/USD Technical Analysis April 4, 2025