EUR/USD faces pressure as EU threatens retaliation on Trump tariffs

EUR/USD is experiencing downward pressure as the European Union warns of retaliatory measures against potential baseline Trump administration tariffs. The pair has retreated 0.2% to 1.0765 amid renewed trade tensions between the US and its largest trading partner. The EU's firm stance reflects the challenge of negotiating with a 27-nation bloc that requires consensus among diverse economic interests. Market participants are pricing in increased volatility as trade negotiations appear to be reaching a critical juncture. The dollar has found support from safe-haven flows as investors reassess global trade risks. Technical indicators show EUR/USD testing support at 1.0750, with a break below potentially opening the path to 1.0700. Resistance remains at 1.0800, which has capped recent recovery attempts. Traders should monitor upcoming EU-US trade discussions closely, as any escalation could trigger further euro weakness against the greenback.