EURUSD dips to the 1.1200 area; will the decline continue?

The EURUSD pair came under pressure following a US Trade Court ruling and the release of the latest FOMC meeting minutes. Find out more in our analysis for 29 May 2025.

EURUSD forecast: key trading points

• Market focus: the US Court of International Trade blocked President Donald Trump’s tariffs
• Current trend: correcting downwards
• EURUSD forecast for 29 May 2025: 1.1200 and 1.1300

Fundamental analysis

The EURUSD rate declined as the US dollar strengthened after the US Court of International Trade overturned tariffs imposed by President Donald Trump. The court ruled that the tariffs were unlawful, directly challenging Trump’s trade agenda. The administration is expected to appeal the decision.

Meanwhile, yesterday’s release of the FOMC meeting minutes revealed the Fed’s cautious stance amid current economic uncertainty. Committee members highlighted the need for patience and greater clarity on inflation and broader economic trends before taking further policy action.

EURUSD technical analysis

On the H4 chart, the EURUSD pair is undergoing a downward correction, retreating to the support area around 1.1200. Bulls are attempting to regain control and reverse the move. With the overall daily trend remaining upward, the pair will likely continue its upward trajectory following the correction.

The EURUSD forecast suggests a rebound towards 1.1300 and higher in the short term if bulls hold the price above 1.1200. However, if bears push quotes below this level, the downward correction could deepen towards the next support at 1.1150.

Summary

The EURUSD pair plunged to the 1.1200 area amid renewed dollar strength. The market will keep a close eye on tomorrow’s US inflation data.