EUR/USD trims gains as fresh Trump tariff threats, Iran woes lift USD
- Trump threatens to raise EU auto tariffs to 25% from 15%, weighing on the EUR/USD pair.
- Trump says he isn't happy about the latest proposal sent by Tehran, adding uncertainty and fueling safe-haven demand for the USD.
- USD rebounds from two-week lows amid intensifying geopolitical risks.
The EUR/USD pair is trading near the 1.1730 level on Friday's late American session, trimming almost all its intraday gains, after United States (US) President Donald Trump threatened to raise the tariff rate on European Union (EU) cars and trucks from 15% to 25% and said he isn't happy with the latest proposal sent by Iran to end the war.
Iran passed a peace talks offer through Pakistan to try and strike a deal with the US, though the details and demands from Tehran remain unknown. US President Trump claimed that “we made strides in talks with Iran, but I'm not sure we're going to get to a deal,” and added that he is not satisfied with the current proposal because Iran is asking for things "he is not comfortable agreeing with".
When asked about potential missile strikes on Iran, US President Trump said: “Why would I tell you that?”, adding to the uncertainty. The heightened uncertainty over the fate of the latest proposal has supported the US Dollar (USD) as a safe haven, whichhas recovered from a two-week low.
Short-term technical analysis:
On the four-hour chart, EUR/USD trades at 1.1730, hovering between nearby moving averages and maintaining a broadly neutral bias. The pair holds above the 20-period Simple Moving Average (SMA) at 1.1713, which lends modest downside support, but it remains capped by the 100-period SMA at 1.1736 and the horizontal barrier at 1.1744. The Relative Strength Index around 53 hints at mildly positive momentum, yet the proximity of overhead levels suggests limited upside unless buyers can force a sustained break higher.
On the topside, immediate resistance is located at the 100-period SMA at 1.1736, followed by the horizontal hurdle at 1.1744. A clearance of these levels would open the way toward 1.1757 and then 1.1785. On the downside, initial support is seen at the nearby horizontal floor at 1.1729, with the 20-period SMA at 1.1713 reinforcing the underlying demand area. A break below this latter level would expose a deeper corrective phase in the short term.
(The technical analysis of this story was written with the help of an AI tool.)
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