EUR/USD Falls as EU-US Trade Deal Strengthens Dollar

EUR/USD declined 0.4% to 1.0780 following the announcement of a comprehensive trade agreement between the European Union and United States. The deal, which removes tariffs on several key sectors and establishes new regulatory cooperation, has boosted dollar strength as markets anticipate increased US exports to Europe. The agreement particularly benefits US technology and agricultural sectors, potentially improving America's trade balance with the EU. Technical indicators show EUR/USD breaking below the 1.0800 psychological support level, with the next key support at 1.0750 (50-day moving average). The relative strength index (RSI) has dropped to 42, suggesting bearish momentum without being oversold. Traders are now focusing on this week's FOMC meeting, where a potential dovish hold could limit further euro losses. The trade deal's implementation timeline and its actual economic impact will be crucial for determining the pair's medium-term direction.