The euro has been rallying significantly as concern over U.S. proposed tariffs is watered down in the face of an intense lobbying effort from leading Republicans. Critics worry that the measures risk igniting a trade war and damaging the U.S. economy.
Republican lawmakers stepped up calls on Tuesday for President Donald Trump to pull back from proposed tariffs on steel and aluminum imports as Senate Majority Leader Mitch McConnell added to an avalanche of criticism.
Another prominent Republican critic of the proposal, House of Representatives Speaker Paul Ryan, returned to the attack on Tuesday, saying the proposed duties of 25 percent on steel and 10 percent on aluminum were too broad. Although the measure is designed to hit China, its main impact will be on U.S. allies like Canada.
With 60-minute chart applied, EURUSD is currently trading at $1.24195 as of 11:40 a.m. in Sydney, already breaking out the major resistance at 1.24015 (61.8% retracement), and holding its upside momentum after struggling around that resistance level for a while.
After a successful breakout, there is a large room ahead for further increase, having a possible move towards our 1st resistance found at Feb. 15’s high of 1.24738. More further, the 2nd resistance will be positioning at Feb. 16’s high of 1.25545.
Relative Strength Index (RSI 14) has been showing a downside momentum, while the price has higher highs at this time, revealing a potential reversal for the pair if it’s back to below the 61.8% retracement.
Chart 1: EURUSD 1-Hour
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