The U.S. dollar was extending its bounce versus the euro for a second day on Tuesday, finding support on what currency strategists said appeared to be substantial short covering versus the euro following the U.

Daily momentum turned bearish while RSI fell. Price pattern shows a double-top bearish reversal in play. Support at 1.1430 levels. Resistance at 1.1780, 1.1840 levels." Information on these pages contains forward-looking statements that involve risks and uncertainties.

“Further euro strength is likely to be self-defeating,” said Valentin Marinov, a currency strategist at Crédit Agricole, a French bank. Exports were already likely to weaken and become a drag on the eurozone economy because of U.S. tariffs and European government policies that would encourage more imports.

The pound briefly hit a two-year low versus the euro on Monday, before rebounding, and dipped on the dollar, though its moves were largely a function of those elsewhere as investors digested the announcement of an EU-U.

The Euro has accelerated its downward momentum vs. the US Dollar (USD) on Monday, sending EUR/USD south of the 1.1600 support to hit new two-week troughs. The pullback came as the Greenback found its footing again, nudging the Dollar Index (DXY) well north of the 98.00 hurdle.