The EURUSD currency pair tested a resistance level between 1.0527 and 1.05325, reaching a high of 1.0528 before declining. This drop followed President Trump’s announcement of a 25% tariff on EU autos and other items, which intensified selling activity.

The pair fell to a low of 1.0489, remaining above the 100-hour moving average at 1.0486, while the 200-hour moving average is positioned at 1.04724. Earlier, the price momentarily dipped below the 100-hour moving average but maintained support above the 200-hour moving average.

Future movements below both moving averages could lead to increased selling pressure, especially if the price falls below the swing area low at 1.04529, near recent lows.

A bounce back above the 100-hour moving average at 1.0486 could provide some breathing room, but reclaiming the previous high of 1.0528 might require more conviction. The selling pressure intensified after Donald’s tariff announcement, suggesting that market reaction was not solely technical. Given that tariffs on EU autos and other imports raise costs for European businesses, the euro faced downward pressure, making it harder to sustain gains.

If this selling momentum continues, breaking below the 200-hour moving average at 1.04724 may bring further selling, amplifying bearish sentiment. That would put the swing low at 1.04529 within reach, an area that previously held firm as support. If price moves below that point, further declines could materialise as stop losses trigger and additional sellers enter the market.

On the other hand, should the pair stabilise above the 100-hour moving average, technical traders may see opportunities for buying, at least in the short term. A push beyond 1.0528 would need added strength, possibly from either weaker US data or a shift in risk sentiment.

Market participants should watch for any updates from Washington or Brussels, as further comments could contribute to volatility. Since political factors have already influenced this move, any statements that soften or escalate trade restrictions may shape price direction. Meanwhile, technical markers like the 100-hour and 200-hour moving averages remain key reference points for short-term positioning.