Although financial markets in both the US and the UK are closed for a public holiday today, Donald Trump is keeping traders on their toes. According to a fresh Reuters report, the US President has backed down from his threat to impose 50% tariffs on EU goods from 1 June, following a phone call from European Commission President Ursula von der Leyen, who urged him to allow time to “reach a mutually beneficial deal”.

This development has boosted the euro while weighing on the US dollar.

As today's EUR/USD chart shows, the euro has risen to its highest level against the dollar since early May. But can the upward trend continue?

EUR/USD Technical Analysis

The ascending trend channel (highlighted in blue) confirms that bullish sentiment currently dominates. However, the EUR/USD chart also presents two bearish arguments worth noting:

→ The price has reached the upper boundary of the channel, which may act as resistance.

→ The 1.1400 level could also serve as resistance. Note how aggressively bears resisted upward movement in April: even when it appeared that the level had been clearly broken from below, the price failed to hold above it for long.

Given this, it is reasonable to suggest that EUR/USD bears may once again become active — particularly if the fundamental backdrop supports them.

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