The remains in recovery mode, while saw weakness close to 1.0730 area after the Trump administration announced a 25% tariff on all imported cars and car parts entering the US.
As a result, is experiencing a deep retracement to the downside, but US stock futures are also lower due to ongoing uncertainty surrounding trade wars.
The Trump administration aims to bring car production and factories back to the US, which has helped the US dollar hold gains this week. However, looking at the price action on the hourly time frame of , this rally still appears to be a wave four correction with key resistance between 104.10 and 105.00, as discussed earlier this week.
There’s still potential for the dollar to reverse lower, possibly today after the release of US economic data, including GDP and unemployment claims.
