Will the Euro Continue to Rise? Analysis of the USD Decline Due to Ukraine Peace Talks and Tariff Delays

Will the Euro Continue to Rise? Analysis of the USD Decline Due to Ukraine Peace Talks and Tariff Delays


EUR/USD Daily Chart

The US dollar has been weakening due to tariff delays and ongoing Ukraine peace negotiations. Meanwhile, demand for the euro has been increasing, pushing EUR/USD to a two-week high.

Looking at the attached chart, EUR/USD has been in a downward trend since late last year but has recently started to rebound. The key question now is whether this is a temporary correction or a sign of a trend reversal.

Future movements will depend on upcoming trade reports in April and developments in Ukraine. Investors should take advantage of short-term gains while carefully assessing long-term trends.

Contents

Future Outlook and Predictions

  1. Ukraine Peace Talks Progress:
    • The ongoing meeting in Munich may lead to discussions on ceasefire agreements.
    • If progress is made, it could stabilize the European economy and further support the euro.
  2. US Tariff Delay and USD Trends:
    • The postponement of reciprocal tariffs has weakened the dollar.
    • However, the trade report in April may bring new developments, so a USD rebound remains possible.
  3. Technical Analysis:
    • EUR/USD has rebounded to 1.0480.
    • Key resistance lies at 1.0535–1.0575.
    • If broken, the next target would be 1.0650–1.0700.
    • If unable to break through, a decline back to 1.0350 is possible.

Investment Decision

  • Market Trend: Short-term bullish trend with resistance at 1.0535.
  • Recommended Investment Period: Short-term trading preferred; medium-term positions should closely monitor geopolitical risks.

Beginner Investment Advice

EUR/USD is currently at a key price level. This presents an excellent opportunity for beginners to take advantage of market movements.

  1. Buying Opportunity:
    • If EUR/USD breaks above 1.0535, it is likely to continue rising. Consider entering a buy position.
    • Target price: 1.0650–1.0700.
  2. Selling Opportunity:
    • If EUR/USD falls below 1.0480, a return to the downtrend is possible. Consider a sell position.
    • Target price: Around 1.0350.
  3. Entry and Exit Points:
    • Buy when the price exceeds 1.0535; sell when it falls below 1.0480.
    • Close your position once the target price is reached to secure profits.

Now is a great time to start forex trading! Choose a reliable FX broker and begin your trading journey today!

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