Next Direction of EURUSD This Week

EUR/USD News:

🔆The US Dollar (USD) fluctuated in response to shifting market sentiment, initially rising on risk-aversion as US President Donald Trump signaled a new wave of tariffs before the market opened. On Tuesday, the White House implemented a 25% tariff on all steel and aluminum imports into the US, with no exemptions.

🔆This sparked concern across the FX market, boosting demand for the safe-haven Greenback. However, the USD's strength was short-lived as weaker US economic data and positive news headlines led to its decline against other currencies.

🔆Moreover, the lack of specifics and the postponement of the new tariffs maintained a positive outlook in financial markets, allowing EUR/USD to reach new highs. Meanwhile, Federal Reserve Chairman Jerome Powell reiterated the Fed's hawkish stance, while European Central Bank officials indicated the possibility of further rate cuts in the coming months.

🔆To end the week, the US reported a 0.9% drop in January Retail Sales, significantly worse than the expected -0.1%. Conversely, December's figure was revised upward to 0.7% from the initial estimate of 0.4%. This disappointing report added more pressure on the USD.

Personal opinion:

🔆EURUSD will continue to increase gradually until there is a new fluctuation from the Fed and BOE's key list. And it is important to prioritize reviewing President Trump's tax policy to be able to grasp the market.

Technical:

🔆Based on basic information about the US economy and tax policy with other countries

🔆Based on trend lines and lake support - Resistance to come up with suitable strategies

Plan:

🔆Price Zone Setup:

👉Sell EURUSD 1.0600 – 1.0615
❌SL: 1.0660 | ✅TP: 1.0550 – 1.0500– 1.0440

FM wishes you a successful trading day 💰💰💰