{"id":39812,"date":"2026-01-22T11:38:11","date_gmt":"2026-01-22T03:38:11","guid":{"rendered":"https:\/\/www.vtmarkets.com\/?p=39812"},"modified":"2026-01-22T11:38:11","modified_gmt":"2026-01-22T03:38:11","slug":"eurusd-stabilises-as-political-shock-reverses","status":"publish","type":"post","link":"https:\/\/www.vtmarkets.com\/en-ca\/analysis\/eurusd-stabilises-as-political-shock-reverses\/","title":{"rendered":"EURUSD Stabilises as Political Shock Reverses"},"content":{"rendered":"\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"559\" src=\"https:\/\/www.vtmarkets.com\/en-ca\/wp-content\/uploads\/sites\/13\/2026\/03\/Image_fx-2025-10-03T175502582-1024x559.png\" alt=\"\" class=\"wp-image-31522\" \/><\/figure>\n\n\n\n<p><strong>Key Points<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>EURUSD traded flat at <strong>1.1685<\/strong> after a <strong>0.3%<\/strong> rebound from <strong>1.16697<\/strong><\/li>\n\n\n\n<li>Price remains capped below <strong>1.1700<\/strong> as short-term momentum weakens<\/li>\n<\/ul>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity is-style-dots\" \/>\n\n\n\n<p>EURUSD held steady at <strong>1.1685<\/strong> on Thursday after rebounding <strong>0.3%<\/strong> in the prior session. The pair had slipped earlier to <strong>1.16697<\/strong>, tracking a wave of US dollar volatility triggered by geopolitical headlines out of Washington.<\/p>\n\n\n\n<p>That pressure eased after President Donald Trump withdrew his threat to impose tariffs on several European NATO members.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">Euro area finance ministers are gathering this afternoon in Brussels amid deepening alarm over US President Trump\u2019s threat to hit a group of European countries with tariffs over Greenland. <a href=\"https:\/\/t.co\/ixM63mkfPJ\">https:\/\/t.co\/ixM63mkfPJ<\/a><\/p>&mdash; Bloomberg (@business) <a href=\"https:\/\/twitter.com\/business\/status\/2013250824294514886?ref_src=twsrc%5Etfw\">January 19, 2026<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>The proposed tariffs were due to take effect on <strong>February 1<\/strong> and would have targeted <strong>Denmark, Sweden, France, Germany, the Netherlands and Finland<\/strong>, alongside <strong>Britain and Norway<\/strong>.<\/p>\n\n\n\n<p>Trump later said he had reached a framework for a deal with NATO regarding Greenland and ruled out military action, prompting a sharp reduction in defensive positioning.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">President Trump abruptly stepped back from threats to impose tariffs as leverage to seize Greenland, ruled out the use of force, and said a deal was in sight to end a dispute over the Danish territory.<a href=\"https:\/\/twitter.com\/hashtag\/greenland?src=hash&amp;ref_src=twsrc%5Etfw\">#greenland<\/a> <a href=\"https:\/\/twitter.com\/hashtag\/trump?src=hash&amp;ref_src=twsrc%5Etfw\">#trump<\/a> <a href=\"https:\/\/twitter.com\/hashtag\/nato?src=hash&amp;ref_src=twsrc%5Etfw\">#nato<\/a> <a href=\"https:\/\/twitter.com\/hashtag\/tariff?src=hash&amp;ref_src=twsrc%5Etfw\">#tariff<\/a> <a href=\"https:\/\/twitter.com\/hashtag\/denmark?src=hash&amp;ref_src=twsrc%5Etfw\">#denmark<\/a> <a href=\"https:\/\/t.co\/g64YYCUYsh\">pic.twitter.com\/g64YYCUYsh<\/a><\/p>&mdash; Reuters (@Reuters) <a href=\"https:\/\/twitter.com\/Reuters\/status\/2014170435575804293?ref_src=twsrc%5Etfw\">January 22, 2026<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>The initial tariff threat had pushed EURUSD lower from a recent high of <strong>1.17430<\/strong>, as traders moved quickly to price in political risk. Once that risk receded, the euro stabilised, though upside momentum failed to rebuild with conviction.<\/p>\n\n\n\n<p>A cautious outlook remains appropriate. Without fresh eurozone catalysts, EURUSD is likely to trade reactively, with political headlines and broader dollar sentiment continuing to dictate direction.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\">Technical Analysis<\/h2>\n\n\n\n<p>EURUSD is trading at <strong>1.16850<\/strong>, marginally lower by <strong>0.02%<\/strong>, as bearish momentum persists following a failed breakout at <strong>1.17430<\/strong>.<\/p>\n\n\n\n<p>Since that peak, the pair has been on a steady downtrend, forming lower highs and lower lows, with the latest bounce from <strong>1.16697<\/strong> showing only minor recovery attempts.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" src=\"https:\/\/www.vtmarkets.com\/en-ca\/wp-content\/uploads\/sites\/13\/2026\/03\/image-20-1024x474.jpg\" alt=\"\" class=\"wp-image-39813\" \/><\/figure>\n\n\n\n<p>The price remains below all key moving averages (MA5 to MA30), reinforcing a short-term bearish structure.<\/p>\n\n\n\n<p>Volume has tapered off during the decline but saw a modest pickup near the recent bottom, suggesting some bottom-fishing interest.<\/p>\n\n\n\n<p>However, for bulls to regain control, the pair would need to break above the <strong>1.1706\u20131.1720<\/strong> resistance zone. Until then, the risk remains tilted to the downside, especially if upcoming macro data leans hawkish for the USD.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\">Short-term Outlook for EURUSD<\/h2>\n\n\n\n<p>EURUSD remains caught between fading geopolitical risk and a lack of strong eurozone drivers. Support at <strong>1.16697<\/strong> continues to anchor the downside, while resistance near <strong>1.1700<\/strong> limits recovery attempts.<\/p>\n\n\n\n<p>If <a href=\"https:\/\/t.co\/B2eNlU6McQ\" target=\"_blank\" rel=\"noopener nofollow\" title=\"\">US political rhetoric remains muted<\/a>, the pair may continue to grind sideways, with intraday moves driven by positioning rather than fundamentals.<\/p>\n\n\n\n<p>A break below <strong>1.16697<\/strong> would expose deeper retracement levels, while a clear hold above <strong>1.1700<\/strong> would be needed to restore short-term upside confidence.<\/p>\n\n\n\n<p><strong>Learn more about trading <a href=\"https:\/\/www.vtmarkets.com\/forex\/\" target=\"_blank\" rel=\"noopener\" title=\"\">Forex Pairs<\/a> on VT Markets <a href=\"https:\/\/www.vtmarkets.com\/Insights\/\" target=\"_blank\" rel=\"noopener\" title=\"\">here<\/a>.<\/strong><\/p>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>EURUSD steadies near 1.1685 after tariff fears fade, but price remains capped below short-term resistance.<\/p>\n","protected":false},"author":64,"featured_media":31522,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[31],"tags":[56,10],"class_list":["post-39812","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-analysis","tag-euro","tag-forex"],"acf":{"acf_article_selection_author":""},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/39812","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/users\/64"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/comments?post=39812"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/39812\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media\/31522"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media?parent=39812"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/categories?post=39812"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/tags?post=39812"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}