EURUSD surges as pressure mounts on Jerome Powell

The EURUSD rate is gaining for the third consecutive trading session, currently trading at 1.1530. Find out more in our analysis for 22 April 2025.

EURUSD forecast: key trading points

• President Donald Trump intensifies criticism of Fed Chairman Jerome Powell
• Traders are concerned about growing tension between the White House and the Federal Reserve
• EURUSD forecast for 22 April 2025: 1.1630

Fundamental analysis

The EURUSD rate continues to rally after rebounding from the 1.1475 support level. Pressure on the US dollar has increased following fresh verbal attacks by President Donald Trump on Federal Reserve Chairman Jerome Powell. On Monday, Trump escalated his calls for immediate rate cuts.

Market participants are increasingly concerned about the rising tension between the White House and the Fed. Trump’s actions could be perceived as an attempt to pressure the Fed’s independence, with speculation around a possible replacement of Powell adding to uncertainty and fear in the market, undermining confidence in the US dollar.

Additional support for the EURUSD rally came from investor disappointment over stalled US-China trade negotiations. Beijing accused Washington of misusing tariffs and warned other nations about entering trade deals with the US, which has increased tensions and further weighed on the US dollar.

EURUSD technical analysis

The EURUSD rate is on the rise after breaking above the upper boundary of the descending corrective channel. Today’s EURUSD forecast points to a continued bullish wave targeting 1.1630. Technical indicators support the bullish scenario, with Moving Averages maintaining their upward direction and the Stochastic Oscillator rising confidently from oversold territory, showing a bullish crossover between the %K and %D lines. Consolidation above the local resistance at 1.1555 will confirm the bullish scenario.

Summary

Increased pressure on the Fed and rising geopolitical tensions continue to undermine the US dollar, supporting the EURUSD rally. The EURUSD technical analysis points to strong upside potential, with the next target at 1.1630.