USD strengthens briefly after Trump declares ceasefire over, triggering risk-off moves before partial reversals in equities and FX.
The U.S. dollar climbed as traders reacted to President Trump’s statement that the ceasefire was over, sparking an initial risk-off shift. Equities turned lower, oil prices rose, and Treasury yields edged higher before some of these moves began to unwind. EURUSD fell below key moving averages near 1.1420 before rebounding toward 1.1420, reflecting the market’s rapid reassessment of the headline’s impact.
EURUSD’s decline tested support at 1.1411, with resistance at the 38.2% Fibonacci retracement level of 1.14618. GBPUSD briefly dipped below its 100- and 200-day moving averages at 1.3399 and 1.3396 but recovered quickly. Both pairs remain sensitive to short-term technical levels amid heightened geopolitical volatility.
The pattern mirrors recent market behavior, where initial reactions to headlines are often followed by corrections as traders digest the news. Support and resistance levels for EURUSD remain at 1.13908 and 1.14618, respectively, while GBPUSD’s near-term bias hinges on holding above its moving averages.