The euro was trading flat after briefly rising to a nine-day high on Tuesday. President Trump threatened the EU with an $11 billion tariff due to subsidies given to the European airline manufacturer, Airbus. The euro was initially unmoved on the reports but later settled the day flat.
Will the EURUSD Fall?
The currency pair extended declines after it rallied to intraday highs of 1.1276. The current declines will see price retesting the previous resistance level at 1.1245 to form support. If this holds, we expect a rebound which could eventually break 1.1276 to test the 1.1300 region. But a failure at the expected support could push EURUSD closer to 1.1245 and possibly extend further declines.
