EURUSD strikes to new lows as tariff talks yield little

The EURUSD extended modestly to a new session low as EU officials indicated that tariffs are likely to stay in place amid limited progress in trade talks with the U.S. The pair reached a low of 1.12849, but remained above a key support zone between 1.12709 and 1.1275.

On the daily chart, this area holds significant technical importance. The 2023 high came in at 1.12753, while the 61.8% retracement of the broader decline from the 2020 high to the 2022 low sits at 1.12709. For sellers to gain more traction, a break below this dual support zone is needed. Until then, the broader bullish bias remains intact.

After testing the lows, the pair has already rebounded, trading back above the 1.1300 level and currently sitting around 1.1313. This bounce reinforces the idea that buyers are still defending key support levels.

Drilling into the hourly chart, Friday’s low swing level also stalled near 1.1274, adding another layer of short-term support. A break below that level could see further downside toward the 38.2% retracement of last week’s rally at 1.12495, and the rising 100-hour moving average just below at 1.1246. A move below both would increase bearish momentum in the short term.