The euro extended the declines on Monday, losing 0.62% on the day. The declines in the common currency came as the US dollar bounced back. Washington turned focus to the EU. President Trump threatened the EU with $4 billion in tariffs in retaliation to the EU subsidies on Airbus, a competitor to the US-based Boeing company. The US Trade Representative’s office published a list of 89 categories that could be hit by higher tariffs.
EURUSD to Extend Declines
The currency pair could maintain the downside momentum. Any near-term bounce could see new selling pressure building up. The recently breached support level at 1.1339 could be tested for resistance. To the downside, the lower support at 1.1250 will be the likely target. However, we do not expect the EURUSD to extend below this support level in the near term.
