EUR/USD price pulls back to $1.17 as Fed minutes and tariff threats pressure the euro
EUR/USD pulls back to 1.1705 after tariff headlines, with key support intact and triangle pattern forming
The euro has lost ground against the U.S. dollar following renewed trade tensions and cautious investor sentiment ahead of the Federal Reserve’s latest policy minutes. After peaking near 1.1880 earlier this month, the EUR/USD pair is now consolidating just above the 1.1700 level, with short-term direction hinging on central bank cues and evolving geopolitical risks.
Highlights
- EUR/USD slips to 1.1705 amid tariff threats from U.S. President Trump and dollar strength
- Investors await FOMC minutes for clarity on timing and scope of expected Fed rate cuts
- Pair consolidates within a symmetrical triangle; 1.1770 breakout or 1.1645 breakdown could set direction
Geopolitical pressure and central bank focus weigh on sentiment
The U.S. dollar gained fresh traction on Wednesday after President Trump signaled a potential 50% tariff on copper imports and hinted at additional levies on semiconductors and pharmaceuticals. Markets were further rattled by the possibility of near-term action against the European Union, with Trump reportedly preparing a formal tariff notice. This resurgence in protectionist rhetoric has pressured risk-sensitive assets like the euro, particularly as concerns grow over global trade disruption.
EUR/USD price dynamics (Source: TradingView)
In parallel, traders are closely eyeing the Federal Reserve’s June meeting minutes, due for release later in the day. While the Fed held its policy rate steady at 4.25%–4.5% in June, markets continue to price in 50 basis points of rate cuts before year-end, with October emerging as the expected starting point. The minutes could provide clarity on the internal policy debate, especially on inflation stickiness and labor market dynamics.
Technical structure still bullish despite short-term pullback
Despite recent weakness, the broader EUR/USD trend remains constructive. The pair is consolidating within a symmetrical triangle on the 4-hour chart after breaking above key resistance at 1.1450 in June. This corrective structure suggests potential continuation if buyers reclaim the 1.1770 level. The 1.1645–1.1668 zone remains key downside support, with a breakdown here likely to trigger a slide back to 1.1450.
Bollinger Band contraction and a flat MACD confirm volatility compression, with price action near the triangle apex. Momentum remains muted on lower timeframes, but as long as EUR/USD holds above its rising trendline from May, the technical outlook favors further upside.
In our earlier outlook, we highlighted EUR/USD’s bullish breakout above 1.1450 and noted the developing symmetrical triangle as a consolidation pattern. Today’s structure confirms that view, with the current pause viewed as a healthy correction rather than trend exhaustion. All eyes are now on the 1.1770 breakout level for confirmation of the next leg.
