News
7x24
Quotes
Economic Calendar
Video
Data
- Names
- Latest
- Prev.
EUR/USD Edges Above 1.1420 as Trade Talks and Eurozone Data Shape Cautious Optimism
Economic
Summary:
EUR/USD rose above 1.1420 as positive U.S.-China trade talk remarks and strong Eurozone data, including a surging Sentix Confidence Index and Italian industrial output, supported the Euro.
Buy
CLOSEDEURUSD
End Time
1.14401
Entry Price
1.16000
TP
1.13600
SL
1.15285 -0.00084 -0.07%
1599
Points
Profit
1.13600
SL
1.16037
CLOSING
1.14401
Entry Price
1.16000
TP
The EUR/USD pair clawed back earlier losses during Tuesday’s European session, climbing above 1.1420 as markets digested ongoing U.S.-China trade negotiations and a batch of upbeat Eurozone economic indicators. Trading near 1.1425 by mid-afternoon, the pair remains confined within its recent range, with investors hesitant to commit to bold directional moves amid uncertainty over trade deal progress. Positive remarks from U.S. President Donald Trump and a hawkish tone from European Central Bank (ECB) officials have lent support to both currencies, but the lack of concrete trade breakthroughs keeps the market on edge, setting the stage for choppy price action in the near term.
The world’s two economic powerhouses, the U.S. and China, are locked in high-stakes trade discussions, with officials aiming to build on last month’s Switzerland meeting that slashed reciprocal tariffs. Trump’s upbeat comment on Tuesday, noting “good reports” from the talks, has buoyed market sentiment, providing a modest lift to the U.S. Dollar. However, traders remain cautious, awaiting tangible progress on contentious issues like rare earth mineral trade, U.S. chip export restrictions, and visa policies for Chinese students. “The constructive tone is encouraging, but these are thorny issues requiring significant concessions,” said one X post, reflecting the market’s guarded optimism.
The talks’ outcome could have far-reaching implications for global markets, including EUR/USD. A breakthrough could strengthen the Dollar by easing trade tensions, while prolonged uncertainty might bolster the Euro as a safe-haven alternative. For now, the pair’s range-bound behavior suggests investors are staying on the sidelines, unwilling to place big bets until clearer signals emerge.
In the Eurozone, a slew of positive economic data has provided a tailwind for the Euro. The Sentix Investors’ Confidence Index for June surged into positive territory for the first time in a year, climbing to 0.3 from -3.6 in May, signaling growing optimism among investors. “This is a significant milestone, reflecting improving sentiment despite global trade uncertainties,” noted a Reuters analyst. Meanwhile, Italian Industrial Output unexpectedly rose 0.5% month-on-month in April, defying forecasts for a 0.2% decline, underscoring resilience in the Eurozone’s third-largest economy.
Adding to the Euro’s strength, ECB policymakers Olli Rehn and François Villeroy de Galhau doubled down on the bank’s hawkish stance. Rehn emphasized the need to keep rates restrictive to tame inflation, projected at 2.4% for 2025, while Villeroy hinted at a gradual approach to easing only if inflation sustainably nears the 2% target. These comments contrast with market expectations for 42 basis points of ECB rate cuts by year-end, per OIS pricing, and have kept the Euro supported against the Dollar.
The Eurozone’s improving fundamentals stand in contrast to recent U.S. data, where a cooling labor market and revised-down GDP forecasts have tempered Dollar strength. The World Bank’s downgrade of U.S. growth to 1.4% for 2025, citing trade barriers, has further clouded the Dollar’s outlook, giving the Euro a relative edge.
Technical Analysis
From a technical perspective, EUR/USD is showing signs of resilience despite its range-bound trading. The pair found support near its 50-day Exponential Moving Average (EMA) at 1.1380 during early Tuesday trading, generating positive momentum that fueled a rebound.The bounce off the EMA50 has given EUR/USD a bullish push, with eyes on the key resistance at 1.1440.The pair is trading along a short-term bullish trendline, bolstered by positive signals from the Relative Strength Index (RSI), which is hovering near 55, indicating room for further upside.
A break above 1.1440 could open the door to the next resistance at 1.1600, a level tested in late May. However, failure to clear this hurdle might see the pair retreat toward the 1.1400 support or the 50-day EMA. The current range between 1.1380 and 1.1440 reflects the market’s indecision, with trade talk developments likely to dictate the next move.
TRADE RECOMMENDATION
BUY EURUSD
ENTRY PRICE: 1.1440
STOP LOSS: 1.1360
TAKE PROFIT: 1.1600
Risk Warnings and Investment Disclaimers
You understand and acknowledge that there is a high degree of risk involved in trading with strategies. Following any strategies or investment methodologies is the potential for loss. The content on the site is being provided by our contributors and analysts for information purposes only. You alone are solely responsible for determining whether any trading assets, or securities, or strategy, or any other product is suitable for you based on your investment objectives and financial situation.
Quick Access to 7x24
Quick Access to More Editor-selected Real-time News
Exclusive video for free
FastBull project team is dedicated to create exclusive videos
Real-time Quotes
View more faster market quotes
More comprehensive macro data and economic indicators
Members have access to entire historical data, guests can only view the last 4 years
Member-only Database
Comprehensive forex, commodity, and equity market data
English
English
العربية
繁體中文
简体中文
Bahasa Melayu
Bahasa Indonesia
ภาษาไทย
Tiếng Việt
Copyright © 2025 FastBull Ltd
Home News Columns 7x24 Economic Calendar Quotes Video Data WarehouseAnalysis AI Signal Pro User Agreement Privacy Policy About Us
Risk Disclosure
The risk of loss in trading financial assets such as stocks, FX, commodities, futures, bonds, ETFs or crypto can be substantial. You may sustain a total loss of the funds that you deposit with your broker. Therefore, you should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources.
No consideration to invest should be made without thoroughly conduct your own due diligence, or consult with your financial advisors. Our web content might not suit you, since we have not known your financial condition and investment needs. It is possible that our financial information might have latency or contains inaccuracy, so you should be fully responsible for any of your transactions and investment decisions. The company will not be responsible for your capital lost.
Without getting the permission from the website, you are not allow to copy the website graphics, texts, or trade marks. Intellectual property rights in the content or data incorporated into this website belongs to its providers and exchange merchants.