EURUSD soared above 1.0900 after Trump imposed new tariffs

The EURUSD rate has climbed above 1.0900 following the introduction of new US trade tariffs. Find out more in our analysis for 3 April 2025.

EURUSD forecast: key trading points

• Market focus: US ADP employment data showed an increase of 155 thousand
• Market focus: Donald Trump imposed new tariffs on US trading partners
• Current trend: an uptrend is in place
• EURUSD forecast for 3 April 2025: 1.0800 and 1.0955

Fundamental analysis

Yesterday, US President Donald Trump introduced a 10% baseline tariff on all imports, with even higher duties targeting key trading partners: 34% on China, 20% on the EU, and 24% on Japan. Additionally, a 25% tariff on foreign cars took immediate effect.

Commenting on the move, Trump described the tariffs as a strategy to support domestic manufacturing and reduce the trade deficit. In response, the EURUSD pair surged as the US dollar came under pressure due to concerns over a potential US economic slowdown triggered by ongoing trade wars.

EURUSD technical analysis

On the H4 chart, the EURUSD pair continues its upward movement, climbing above 1.0900. The Alligator indicator confirms the bullish trend. The key support level is at 1.0730, with resistance at 1.0955.

Today’s EURUSD forecast suggests the pair could continue to rise towards 1.0955 and higher if the bulls hold the price above 1.0900. However, if the bears regain control and reverse the quotes downwards, a correction towards 1.0730 may follow.

Summary

The EURUSD rate has broken above 1.0900 amid the introduction of new US trade tariffs. The US dollar and stock markets are under pressure as fears mount over the possible negative impact of trade wars on US economic growth.