Technical Analysis:
EUR/USD maintained upward momentum throughout Wednesday's trading session, climbing from early European session lows near 1.0780 and extending gains into New York trading to reach an intraday peak of 1.08738 before easing slightly to settle near 1.0850, up 0.54% on the day. The price action continues to reflect a period of healthy consolidation within a clearly defined range between 1.0733 and 1.0955, initiated after a significant rally from the late February lows. Technical evidence, including sustained closes above the key 200-day (around 1.0730), 21-day (near 1.0800), and 5-day (approximately 1.0825) moving averages, strongly supports a bullish continuation pattern currently underway.

Momentum indicators corroborate the constructive bias, with daily RSI trending higher while longer-term monthly RSI confirms underlying bullish strength. Immediate resistance remains positioned at the crucial 1.0950/60 range high. A sustained breakout above this pivotal zone, potentially facilitated by tariff measures milder than anticipated, would validate the bullish scenario and accelerate EUR/USD toward ambitious technical targets at the 2024 yearly peak of 1.12104, with the subsequent major resistance at the 2023 high of 1.1276 also coming into play.

Conversely, significant caution is warranted ahead of President Trump’s tariff announcement. Should the tariffs ignite substantial risk-off sentiment, a swift appreciation in the U.S. dollar could lead EUR/USD to breach critical technical support at the 200-day moving average near 1.0730. Such a bearish development would confirm a significant deterioration in short-term bullish sentiment, triggering stop-loss selling and accelerating downward momentum. Key downside targets would then include initial structural support at 1.0600/30, followed by deeper support at the notable 1.0525/35 area—representing significant historical resistance-turned-support from early 2024.