**EUR/USD Slides Below 1.1700 as Tariff Fears Boost Dollar to Two-Week High**
*Original story credit: FXStreet News Team*
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### Overview
The EUR/USD pair experienced a notable decline, dropping below the 1.1700 level as the US dollar surged to a two-week high. This movement in the currency pair was primarily driven by renewed fears of escalating global trade tensions, especially surrounding tariffs, as well as diverging economic data between the United States and Europe. As uncertainty grew, investors flocked to the US dollar as a safe haven, placing additional pressure on the euro.
### Trade Tensions and Tariff Fears
– Trade tensions between the US and several of its key trading partners—including the European Union, China, and Mexico—continued to weigh heavily on global markets.
– The Trump administration’s firm stance on trade, including proposed and implemented tariffs on imported goods such as steel, aluminum, and automobiles, sparked concerns about the potential for a broader trade war.
– Fears escalated after signals of possible retaliation from affected countries, stoking volatility in both equity and currency markets.
– Market participants increasingly sought out the US dollar for its traditional safe-haven qualities amid heightened uncertainty.
– Recent rhetoric from US officials suggested minimal willingness to compromise, underscoring persistent risks for global trade flows.
### Impact on the US Dollar
– The ICE US Dollar Index (DXY), which tracks the dollar against a basket of major currencies, rose sharply to its highest point in two weeks.
– Safe-haven demand, combined with expectations that US interest rates would continue to rise, contributed to the dollar’s strength.
– Hawkish comments from Federal Reserve policymakers in recent speeches reinforced the view that more rate hikes may be in store for 2024, further boosting investor confidence in the greenback.
– US Treasury yields moved higher in tandem with the dollar, reflecting investors’ expectations for tighter monetary policy.
**Key factors supporting the dollar included:**
– Robust US economic data relative to Europe.
– Ongoing geopolitical and trade uncertainties.
– Prospects for continued monetary tightening by the Federal Reserve.
### EUR/USD Performance and Technical Analysis
– The EUR/USD currency pair broke decisively below the 1.1700 psychological support level during intraday trading.
– Technical indicators pointed to a bearish trend, with the pair extending losses after breaching short-term support lines.
– Strong downward momentum suggested the possibility of further declines in the near term, barring positive developments in trade negotiations or unexpected economic data from the Eurozone.
#### Chart Insights
– Previous support at 1.1700 acted as resistance after the breakdown.
– Next key support levels were identified near 1.1650 and then at 1.1600.
– Resistance is anticipated at 1.1750, followed by a stronger barrier at 1.1800.
#### Technical signals:
– Relative Strength Index (RSI) moved into oversold territory,
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