Chart of the day - EURUSD (20.01.2025)

The EURUSD pair gains 0.45% today, reaching 1.03230, supported by both a strong euro and a weakening dollar.

Today at 6:00 PM, the inauguration of Donald Trump as the 47th President of the United States will take place. Earlier in the day, prior to the inauguration, the dollar is one of the weakest currencies among the G10 currencies. The dollar index is down 0.30% to 108.8000, while EURUSD is trading 0.45% higher, driven by the strength of the euro on the opposite side.

The decline in the dollar could be caused by speculation regarding a possible delay in tariffs by Trump. However, if Trump announces tariffs within the first days of his presidency, the dollar could quickly recover its losses and continue to appreciate. Speculation about a delay in tariffs is also fueled by the fact that Donald Trump’s recent attention has been focused on the cryptocurrency market. Following the weekend’s events, Trump has announced further decisions to be made at the beginning of this week.

EURUSD is bouncing off a key support level below 1.0200 and continues to move upward. From a technical perspective, the most critical range of the current movement may be the next resistance levels below 1.03500 and 1.04900. However, the most important factor will be Donald Trump's initial decisions this week.

Source: xStation 5