EUR/USD Slides as U.S. Tariffs Boost Dollar Strength

Market Overview

Cryptocurrency

Bitcoin continues to set new record highs, reaching $117,000, fueled by strong inflows from ETF funds and inflation concerns following the signing of Trump’s “Big Beautiful Bill.” The bill increases U.S. public debt and encourages capital to flow back into scarce assets like Bitcoin. Meanwhile, altcoins such as Ethereum, Solana, XRP, and meme coins have also posted strong gains.

However, some indicators on Binance suggest a potential short-term correction, as strong buying momentum is being absorbed by profit-taking pressure. Nonetheless, the long-term uptrend remains intact, especially as Bitcoin continues to attract capital from both retail and institutional investors amid tightening liquidity.Market sentiment remained stable, supported by a decline in jobless claims and growing expectations that the Fed will cut interest rates at its upcoming meeting later this month.
 
United States

U.S. stocks edged higher, with the S&P 500 and Nasdaq closing at new record highs. The consumer sector led the gains, while airline stocks like Delta and United Airlines surged on optimistic earnings expectations. 

Despite escalating trade tensions due to a new round of tariffs from Trump, the U.S. dollar strengthened, the 10-year Treasury yield rose to 4.35%, and crude oil prices fell by over 2%. Investors are now awaiting the Q2 earnings season and assessing the potential inflationary impact of the new tax policy.

Bitcoin (BTCUSD)

Fundamental Analysis

Bitcoin has just set a new all-time high at $117,000 before pulling back slightly to the $115,000 area. While the long-term trend remains bullish, data from Binance indicates signs of short-term distribution, as buying volume is being heavily absorbed by selling pressure. The rise in open interest and over $520 million in liquidations—mostly short positions—further supports the likelihood that the market may need a short-term correction before resuming its upward momentum.
 
Analyst Credit BULL stated that “shorting Bitcoin is now impossible,” as the technical structure suggests the potential for a new impulse 
wave toward the $130,000 level.

Technical Analysis

BTC is currently in a strong uptrend, having broken above the key resistance at $112,000, set a new high at $117,000, and is now trading around $115,940.This is the highest level (ATH) since May 2025, indicating strong recent buying momentum.
 
The RSI stands at 81.19, placing it in the overbought zone. While this reflects strong market enthusiasm, it also signals the risk of a short-term correction.

EURUSD

Fundamental Analysis

The EUR/USD exchange rate fell 0.22% to 1.1668 after U.S. President Donald Trump announced a 35% tariff on goods from Canada and signaled a planned 15–20% tariff on EU products. This move caused the U.S. dollar to strengthen sharply against both the euro and the Canadian dollar, while European and U.S. stock markets pulled back. Investors are increasingly concerned about escalating trade tensions, especially as the negotiation deadline extends to August 1.
 
Technical Analysis

EUR/USD has been in an uptrend since mid-June, but is now showing signs of a potential downside correction.Recent trading volume has increased as prices declined, confirming genuine selling pressure.
 
The price has broken below the 34-period EMA, signaling weakness, and is currently testing the 89-period EMA — a key dynamic support level.

Gold Spot (XAUUSD)

Fundamental Analysis

Gold prices continued to edge higher during the Asian session, rising 0.21% to $3,325/oz, as global trade tensions escalated. U.S. President Donald Trump announced a 50% tariff on imports from Brazil and warned that more countries could face tariffs if no agreements are reached by August 1. Rising geopolitical risks and inflation concerns are boosting demand for gold as a safe-haven asset.

On the Comex exchange, July gold futures rose for the second consecutive session, settling at $3,317.40/oz — marking the strongest gain in nearly two weeks.
 
Technical Analysis
 
Medium-term trend: Sideways within a wide range between the support zone at 3,212 – 3,245 and the resistance zone at 3,380 – 3,440.Current price: 3,327.77 — currently retesting the short-term resistance area and key EMA levels.
 
Liquidity is increasing in both bullish and bearish order blocks (OB), confirming that Smart Money behavior is actively controlling these zones.

 

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