Traders opened Tuesday’s session digesting Monday’s risk-on themes and ongoing geopolitical jitters. In European trading, the euro strengthened amid a broad “risk-on” mood as world leaders met at the G7 summit. Meanwhile, U.S. tariff concerns and softer-than-expected data weighed on the dollar. The yen also fell to multi-month lows against major currencies after commodities and equities rallied on Middle East tensions. With the Fed meeting on Wednesday, the BoJ on Monday, and the BoE on Thursday, market players will closely watch USD, EUR, GBP and JPY behavior for cues this week.
EUR/USD

The EUR/USD 5‑minute chart shows that Monday’s rally topped out just below 1.1600 before reversing. Price plunged from ~1.1590 down to ~1.1530 and is now trading in a 1.153–1.158 range. Recent swings form a short-term double-top (near 1.160) with support around the 1.1530 zone. Overall, the pair stalled near session lows on Tuesday morning and is consolidating in the middle of this range.
Technicals in Focus
Momentum faded after the spike to 1.1600. The MACD histogram has swung negative, reflecting the pullback. RSI sits near the mid-40s – neither overbought nor oversold – suggesting limited immediate momentum. The stochastic oscillator has dipped toward oversold territory on the 5-min chart and may be primed for a bounce. The 1.1550 level (50% retracement of Monday’s drop) is also a reference point. In summary, indicators are mixed-to-bearish in the short term, but not at extreme levels yet.
Trading Strategy (Neutral to Buy)
Look for a dip-and-rebound setup. A buy entry around the 1.1530–1.1540 support area could be taken with a stop below 1.1520. Initial targets lie near 1.1580–1.1600 (last highs and key resistance). A break above 1.1600 would open the way to 1.1620. Maintain discipline given the whipsaw environment; only enter on early signs of support holding or a bullish RSI divergence. (If 1.1530 support fails decisively, consider reversing to a cautious short with stops above 1.1580.)
GBP/USD

The GBP/USD chart shows similar swing behavior. Price pushed up to ~1.3610 on Monday but then reversed sharply to test ~1.3510. Currently the pair is hovering around 1.3570. This action forms a near-double-top at 1.3610 with support near 1.3520. On the 5-min chart, GBP/USD is rangebound between 1.3520 and 1.3600 after yesterday’s volatility. In short-term terms it is carving out a neutral trading range, with bulls and bears vying for control.
Technicals in Focus
Short-term momentum is cooling off. The MACD has flattened after its Monday climb. RSI is around 50–55 (mid-range) indicating no clear directional bias. Stochastic readings on the 5-min chart recently fell from overbought to neutral; a bullish crossover here would support a bounce. Key levels to watch are resistance at 1.3600 and support at 1.3520. Overall, the technicals suggest a slight bullish tilt (oversold stochastics) but still rangebound action for now.
Trading Strategy (Neutral to Buy)
Favor buying dips. A long entry could be considered around 1.3540–1.3550 (just above support), with a tight stop below 1.3520. Targets are in the 1.3600–1.3620 area (recent swing highs). If momentum accelerates higher, extending to 1.3640 is possible. Keep risk small: if price breaches 1.3520 again, protect any long exposure. Only a decisive break and close above 1.3610 would turn the outlook decidedly bullish; until then, a neutral/slightly bullish stance is prudent.
USD/JPY

The USD/JPY chart shows a volatile up-and-down swing. The pair spiked from ~144.2 to ~145.0 overnight, then gave back gains down to ~144.4. On the 5-min timeframe, this looks like a failed breakout – a quick rally peaked near 145.0 resistance before sellers stepped in. Price is trading around 144.6, below the recent high. In summary, USD/JPY tested a key resistance zone (145.00) but was unable to hold above, now consolidating slightly below.
Technicals in Focus
Momentum has eased after the brief rally. The MACD is flattening (having peaked along with price). RSI is in the 60s on the 5-min chart (moderate), not yet signaling overbought on this timeframe. Stochastic oscillators rolled over from high levels, indicating a possible short-term top. Key levels: resistance at 145.00 (high of the swing) and support near 144.30 (recent low). These indicators suggest a mild bearish bias after the failed breakout, though the trend is still range-trading rather than clearly down.
Trading Strategy (Neutral to Sell)
Consider selling near resistance. An entry around 144.75–144.80 (just under 145.00) with a stop above 145.20 could work, targeting a drop toward 144.30–144.40 (support). If price falls below 144.30 convincingly, the next target is ~143.90. Conversely, if USD/JPY breaks back above 145.00 with conviction, flip bias to bullish. Until then, shorting small rallies (with tight stops) aligns with this neutral/slightly bearish tilt.
Market Outlook
Looking ahead, the spotlight is on central bank decisions and key data. Investors will watch Wednesday’s Fed announcement and Monday’s Bank of Japan policy meeting for guidance. The BoJ is widely expected to hold rates steady, while U.S. policymakers are likely to signal no change as well. Thursday’s Bank of England decision and U.S. retail sales data (Tuesday) are also on the radar. Geopolitical developments (including Middle East tensions and G7 discussions) will continue to influence risk sentiment. In this environment, traders should watch for breakouts from the recent ranges on EUR/USD, GBP/USD and USD/JPY as these events unfold. Clear policy cues or unexpected news could trigger volatile moves; staying agile and using tight risk controls will be key in the sessions ahead.