**EUR/USD Declines Below 1.1700 Amid Rising Tariff Concerns, US Dollar Hits Two-Week High**
*Original author: FXStreet News Team*
*Expanded and enhanced by [YourName], June 2024*
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**Market Overview**
The EUR/USD currency pair experienced a sharp decline, falling below the 1.1700 level on renewed concerns about global trade tensions. The US dollar benefited from its safe-haven status, hitting a two-week high as fears of escalating tariffs between the world’s largest economies unsettled global markets. As the ongoing trade disputes between the United States, the European Union, and China continue to develop, investors are reassessing their positions in the forex market, causing major currency pair shifts.
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**Key Developments Impacting EUR/USD**
– **Tariff Threats and Trade Tensions:**
– The US administration recently announced the possibility of raising tariffs on an additional $200 billion worth of Chinese goods, intensifying trade conflicts.
– China responded with strong rhetoric, promising countermeasures, escalating fears about a full-scale trade war and its impact on global economic growth.
– Simultaneously, the European Union faces similar frictions, with the US threatening to impose tariffs on imported cars and EU products.
– **Investor Sentiment Favors Safe-Haven Dollar:**
– As a result of trade uncertainty, investors have scrambled for safe-haven assets, particularly the US dollar and US Treasury bonds.
– The dollar index (DXY), which measures the greenback’s strength against a basket of major currencies, surged to a two-week high — a clear indication of heightened risk aversion.
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**EUR/USD Price Action and Technical Analysis**
– **Immediate Reaction:**
– EUR/USD slid below the critical 1.1700 level during Thursday’s session, posting its lowest valuation since late June.
– The pair struggled to regain footing, faced with strong dollar demand and no significant euro-positive news.
– **Chart Analysis:**
– *Support Levels:* The next significant support level for EUR/USD is around 1.1650, with further downside risk if this threshold is breached.
– *Resistance Levels:* The immediate resistance to watch lies at 1.1720, followed by 1.1750.
– *Indicators:* Relative Strength Index (RSI) on the 4-hour and daily charts shows the pair moving into oversold territory, suggesting potential for a short-term technical correction. However, fundamental pressures remain dominant.
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**Eurozone Economic Backdrop**
– **Mixed Economic Data:**
– Recent economic data from the Eurozone provided little support for the euro. Key indicators, such as manufacturing PMI and consumer confidence, suggested the region is experiencing slower growth momentum.
– The European Central Bank (ECB) remains committed to a cautious monetary policy stance. ECB President Christine Lagarde has reiterated the need for continued stimulus, citing lingering inflation concerns and subdued wage
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