EUR/USD rebounds amid EU-US trade tensions – Danske Bank

💡 DMK Insight

EUR/USD’s bounce into the mid-1.16–1.17 range signals a critical moment for traders. The renewed US–EU trade tensions are creating volatility, which can be both a risk and an opportunity. Traders should keep an eye on the Supreme Court ruling regarding tariff legality, as its outcome could significantly influence market sentiment and the currency pair’s trajectory. If tariffs are upheld, we might see a stronger dollar, pushing EUR/USD lower, while a ruling against tariffs could lead to a bullish run for the euro. Watch for key support around 1.1600 and resistance near 1.1700. A break below 1.1600 could trigger further selling pressure, while a sustained move above 1.1700 might attract bullish momentum. Given the current geopolitical climate, it’s crucial to stay agile and ready to adapt strategies based on news flow and market reactions.