The Euro has received strong support on Tuesday and continues its upward trend against the US Dollar (USD) for the third consecutive day. This is driven by expectations that inflation figures across the entire Eurozone will remain stable in the near future. These predictions were reinforced after preliminary data from Germany’s Harmonized Consumer Price Index (HICP) for December showed a monthly inflation increase of 0.7%, higher than the expected 0.5%. Year-on-year, the HICP rose by 2.9%, compared to 2.4% in November.

However, the market remains concerned about potential sudden moves from President-elect Donald Trump regarding his tariff plans. The Washington Post reported that Trump is considering simplifying his tariff programs by applying a single, flat tariff rate to all imported goods. Shortly after, Trump dismissed the rumors and confirmed that the tariff plans would proceed as previously announced.

On a technical basis, the Euro has recovered from the support level of 1.0257 to 1.0427. To mitigate the risk of further declines, traders should set a stop loss at 1.0350. The future movement of the Euro remains influenced by key economic data and changes in Trump’s tariff policies. The next significant resistance level for the EUR/USD pair is 1.0500, and if this level is surpassed, the Euro could continue its recovery trend. Conversely, if the support level of 1.0427 is not held, the currency could face a correction to lower levels, such as 1.0350.

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