The U.S. has imposed tariffs on goods from Canada and Mexico. In response, Canada has introduced 25% tariffs on U.S. products, while Mexico is set to make an announcement on Sunday. Despite these developments, investors remain pessimistic about the Federal Reserve's policy, as they are still pricing in more than a 50% chance of a rate cut in June.

We believe this sentiment will soon change, leading to a market reversal, since trade wars tend to fuel inflation. It's only a matter of time before the market cools down. The euro's next target is 1.0667. If it consolidates above this level, the subsequent target will be 1.0762; however, it's uncertain whether the price will take advantage of this opportunity. The U.S. employment report on Friday could trigger a reaction.

On the H4 chart, the price has consolidated above the intermediate level of 1.0610. However, the Marlin oscillator is already within the overbought zone, contributing to ongoing uncertainty and erratic movements. It's also noteworthy that only the euro and the pound appear to be out of sync with the broader market.