After settling with China, President Donald Trump is now shifting the focus of the trade war to Europe.
Sparking new concerns, Trump threatened a 50% tariff on imported goods from Europe in addition to considering a 25% tariff on iPhone products made outside the United States.
Tensions have eased somewhat with discussions between the two sides setting a July 9 deadline for a trade agreement to be reached.
The Euro is seen maintaining a positive trading performance as the US dollar continues its downward trend.
As can be seen on the EUR/USD currency pair chart, the price continued to rise to a new 4-week high.
Last Thursday, the upward trend was slightly halted with the price retreating below the 1.13000 zone for a moment.
However, the price then continued to rise on Friday, surpassing 1.13000 again and ending trading at the close of the last session at around 1.13700.
A bullish signal was observed after the price rose again above the Moving Average 50 (MA50) support line on the 1-hour timeframe on the EUR/USD chart.
The price continued to rise at the opening of early trading in the week reaching the 1.14000 level in the Asian session this morning (Monday).
With the momentum displayed, the price tends to go higher this week with the target shifting to the 1.15000 level.
However, if the price retreats back down from the 1.14000 zone that has been reached, the 1.13000 zone is likely to be approached again.
The price reaction, which will also test the MA50 support, will provide an indication of the direction of further price movement.
