Today, the EUR/USD pair is under significant pressure, falling to 1.0200, marking a three-week low.

Spot prices are now approaching the lowest level in over two years, last seen in January, and appear vulnerable to the continuation of the multi-month downtrend.

The U.S. dollar has sharply strengthened following President Donald Trump's decision to impose 25% tariffs on goods from Canada and Mexico, as well as an additional 10% tariff on Chinese goods. This move signals the start of a new global trade war and is dampening investor interest in riskier assets. As investors seek safe-haven assets, additional downward pressure is placed on the EUR/USD pair.

Furthermore, on Friday evening, Trump announced that he would impose tariffs on goods from the European Union. This, combined with the dovish stance of the European Central Bank (ECB), continues to undermine the euro. Last week, the ECB cut borrowing costs by 25 basis points and left the door open for further reductions, adding to the negative outlook for the euro and contributing to the bearish sentiment surrounding the EUR/USD pair. The ECB's position contrasts sharply with the hawkish stance of the Federal Reserve, which supports the U.S. dollar and increases the likelihood of further EUR/USD declines.

Despite a recent pullback in the U.S. Treasury yields that might offer some support to the dollar, the overall fundamental backdrop suggests that the path of least resistance for spot prices is likely downward.

From a technical perspective, the Relative Strength Index (RSI) is approaching oversold territory, indicating the possibility of a short-term correction in the near future.