• The EUR/USD outlook indicates further dollar weakness.

• Reports revealed that the US president plans to fire Fed Chair Jerome Powell.

• The European Central Bank cut rates last week, leaving room for more.

The EUR/USD outlook indicates further dollar weakness after Trump’s threats to fire Fed Chair Powell. Market participants are dumping the greenback and US assets, allowing the euro to climb. Meanwhile, the ECB indicated weaker growth in the Eurozone due to Trump’s tariffs. As a result, traders are pricing more rate cuts in the coming months. 

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On Friday, reports revealed that the US president plans to fire Fed Chair Jerome Powell. Since Trump took office, he has advised the Fed to continue cutting interest rates. However, Powell has remained cautious, waiting to see the impact of recent tariffs on the economy. The Fed Chair has repeatedly said there is no hurry to lower borrowing costs. 

The reports caused more turmoil in markets recovering from wild tariff moves. Moreover, investors lost confidence in the US economy, plunging the dollar. 

Meanwhile, although the euro rallied, the European Central Bank cut rates last week and left room for more. ECB president Christine Lagarde noted that Trump’s tariffs would hurt growth. However, she failed to give clear guidance about the next meeting. Still, market participants expect another rate cut in June. Meanwhile, policymakers may wait to see if Trump’s 20% tariff on the Eurozone takes effect. 

EUR/USD key events today

Traders are not anticipating any key economic releases today. Therefore, they will continue to digest US policy developments.

EUR/USD technical outlook: Uptrend breaks past 1.1502 for a new high

On the technical side, the EUR/USD price has rallied and broken above the 1.1502 resistance level. The move has reached a new high, further strengthening the bullish bias. The price now trades well above the 30-SMA, with the RSI in the overbought region. This shows a strong uptrend.

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Bulls took charge when the price crossed above the 30-SMA. They have maintained the price above the SMA, respecting it as a solid support. At the same time, the price has consistently made higher highs and lows, indicating a developed bullish trend. 

However, bulls might pause at the 1.1602 resistance to allow the price to retest the SMA. Still, the bullish bias will remain intact as long as the price trades above the SMA and the RSI above 50. 

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