The trump comments dollar reaction pushed the U.S. currency higher after President Trump said the “Ceasefire is OVER!” Markets first moved into a risk-off pattern. Stocks fell, oil rose, and Treasury yields edged up. However, several of those moves later started to reverse.
The source said traders again saw how fast headlines can drive price action. It also said markets often react first and reassess later. As a result, the early dollar gain came with sharp swings across major pairs.
Trump Comments Dollar Move Hits EURUSD
EURUSD dropped below its 100-hour and 200-hour moving averages, which stood at 1.14257 and 1.14200. The pair then fell to 1.1411 before rebounding toward 1.1420. According to the source, those two moving averages remain the main short-term guide.
Trading below them favors sellers. However, a steady move back above them would support buyers. On the upside, resistance stands at the 38.2% retracement of the June fall at 1.14618, followed by this week’s high at 1.14715. The day’s rally stopped at 1.1460, just under that retracement level.
On the downside, support sits at this week’s low of 1.13908. Below that, the source pointed to 1.1377 and then the June cycle low at 1.13238.
GBPUSD and USDJPY Hold Key Levels
GBPUSD briefly moved under its 100-day and 200-day moving averages at 1.3399 and 1.3396. It then touched 1.33913 after the headline. Buyers soon returned and pushed the pair back above both levels. The pair later traded near 1.3408, which kept the bullish bias in place.
A move back below those daily averages, and below the rising 100-hour moving average at 1.33868, would shift control to sellers. Meanwhile, resistance remains in the 1.3446 to 1.3465 zone. That area drew sellers again in the Asia-Pacific session, after the pair reached 1.3451.
USDJPY also rose on the news, but it stayed below the 161.95 to 161.97 resistance area. The source said that zone marked the 2024 high. After a break on June 30, the pair climbed to 162.833, its highest level in 40 years, before falling to 160.45. In addition, the 200-hour moving average at 162.046 and the 100-hour moving average at 162.173 added more resistance.
Treasury yields stayed near session highs as markets continued to digest the latest headlines.
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