The tariff saga is among the most popular news nowadays with the situation changing every hour. The US President signed a new tariff order on Saturday but decided to postpone new tariffs on Tuesday after having negotiations with the Mexican president and the Canadian Prime Minister. However, the situation with tariffs imposed on China is still unclear. According to the latest news, Beijing is ready to appeal the decision to the World Trade Organization. Moreover, China has announced 15% tariffs on US exports, including coal, LNG, and crude oil. 

With all this in mind, EUR/USD started this week with a huge downside gap but managed to restore its position thanks to inflation data from the Eurozone that was above expectations. Higher inflation in the region may prevent the European Central Bank from being aggressive in cutting rates. However, the ECB is likely to continue its monetary policy normalization strategy during the upcoming meetings.

One of the factors that still exert pressure on the currency pair is the upcoming tariffs on goods coming from the Eurozone. According to the White Administration, goods coming from Europe will also fall under tariffs, but it is still unclear when the US president is going to make this decision and how large these tariffs will be. 

On the technical side, EUR/USD is trading right below the 50-period SMA, which means that bears are controlling the market at the moment. The currency pair is testing this dynamic resistance level. The closest support level is at 1.0220, which prevents EUR/USD from falling to 1.0200. On the upside, the SMA50 line protects 1.0340, which will be the closest resistance level. 

GBP/USD: The Bank of England Meeting is Ahead

Along with tariffs that are the main focus for traders and investors at the moment, those who trade GBP are looking forward to seeing the results of the Bank of England meeting that will take place on Thursday. While there is almost no doubt that the BoE will cut rates by 25 basis points, market participants will closely watch the announcements as well as read the BoE Monetary Policy Report to find out more about the future plans.

According to the latest economic news from the UK, the Bank of England is likely to cut rates several times this year. 

On the technical side, GBP/USD has jumped over the SMA50 dynamic line, which means that bulls are taking control. The closest resistance level is at 1.2450, which prevents GBP/USD from moving higher to 1.2500. On the downside, the current support level is at 1.2370. If the currency pair breaks below this level, it will move to 1.2300.

WTI: New Losses on News on Trump’s Tariffs

The West Texas Intermediate price managed to make a pause in its downtrend on Monday on news that the US administration is going to impose 25% tariffs on goods coming from Mexico and Canada. However, Tuesday’s news on the agreement between the United States on one side and Mexico and Canada on the other pushed the quotes further down.

Fears and supplies that may be interrupted are gone. Market participants currently examine the remaining tensions between the United States and China as the latter has imposed 15% tariffs on US crude oil. Anyway, currently traders and investors are focused on China’s macroeconomic data as Beijing is among the key oil importers in the world. 

Another reason for the crude oil to continue its downtrend was news from the OPEC+ meeting that took place on Monday. The group recommended no changes in their output policy, which means that they are going to maintain their current supply levels until the next meeting. 

The situation on the hourly chart remains bearish as the price fluctuates below the SMA50. After testing 71.20, quotes moved upwards, but the upside is limited by the simple moving average. On the downside, crude oil should break below 71.20 to reach 71 and continue its downtrend.

Gold: Buyers Still in Control as the US-China Trade War is Escalating

Being a safe haven asset gold gained additional support on Monday after the announcement of Trump’s tariffs on goods coming from China. The latter has already promised to address a claim to WTO. Moreover, the Chinese government has prepared some countermeasures, including 15% tariffs on US crude oil and liquified natural gas. With all this in view, XAU/USD manages to establish new records.

When it comes to the technical analysis, gold is trading right above the SMA50, which acts as a dynamic support level now and suggests that buyers are controlling the market. The upside is limited as we have a couple of lower peaks, which means that a correction is in place and it may turn into a true downtrend. On the downside, the closest support level is at 2,800. If the price manages to break it, the next support level will be at 2,775.

BTC/USD: Bitcoin Finds Support at 99,000

The tariff news pushed Bitcoin lower due to the risk-off mode that was initiated. However, the downside was limited and currently BTC/USD is trying to make some new gains. The cryptocurrency is supported by the initiative to create a Bitcoin reserve by the US government. 

Bitcoin is trading right above the SMA50 dynamic support line. If BTC/USD manages to break below it, the next target will be at 95,900, while the resistance level is at 102,100, which prevents the currency pair from moving higher and reaching 105,800.