EUR/USD Analysis Summary Today
- Overall Trend: Bullish.
- Today's EUR/USD Support Levels: 1.1550 – 1.1430 – 1.1300.
- Today's EUR/USD Resistance Levels: 1.1660 – 1.1730 – 1.1800.
EUR/USD Trading Signals:
- Buy EUR/USD from the support level of 1.1490 with a target of 1.1720 and a stop-loss at 1.1400.
- Sell EUR/USD from the resistance level of 1.1680 with a target of 1.1400 and a stop-loss at 1.1790.
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EUR/USD Technical Analysis Today:
For the second consecutive day, the EUR/USD price is moving strongly upward, driven by improved investor and market sentiment. At the time of writing, gains have reached the 1.1660 resistance level, near the pair's highest point in three and a half years. The positive momentum for currency prices increased after US President Donald Trump announced on Truth Social that Israel and Iran had agreed to a temporary ceasefire, starting Monday midnight Washington time, following US-ordered airstrikes on Iranian nuclear facilities.
Trump stated that the agreement aims to end the conflict permanently, calling it a "12-day war." He praised both nations for their "resilience, courage, and intelligence" in reaching the agreement. According to Reuters, an Iranian official confirmed Tehran's acceptance of the US-brokered deal, though Israel has not yet commented.
Trading Tips:
Dear TradersUp follower, despite the gains, it's best to continue selling the EUR/USD, but without risk, and to closely monitor the factors affecting currency prices.
Recent EUR/USD gains have strongly pushed technical indicators upwards. The 14-day RSI (Relative Strength Index) is around a reading of 65 and still has some room and gains before reaching overbought territory. At the same time, the MACD (Moving Average Convergence Divergence) lines continue to confirm bullish dominance. Overbought conditions for technical indicators might occur as bulls push the EUR/USD pair towards the 1.1720 and 1.1800 resistance levels, respectively.
Today's bullish momentum for EUR/USD will react to the announcement of German IFO Business Climate Index readings at 11:00 AM Egypt time, followed by anticipated statements from European Central Bank (ECB) President Lagarde at 4:00 PM Egypt time. On the US side, US Consumer Confidence readings will be announced at 5:00 PM Egypt time, and simultaneously, there will be new statements from Federal Reserve Chair Jerome Powell.
Will the euro rise against the US dollar in the coming days?
According to forex market experts' forecasts, the direction of exchange rates will depend on crude oil prices and their rate of increase, subsequent risk-off pressures, and potential escalation. The US Dollar Index (DXY) was slightly stronger last week, but in light of recent developments, the US currency might see further strength, as its safe-haven attributes perform better. Therefore, energy prices and the scope of Iran's response will be a key focus in the short term, with the Strait of Hormuz being a major component.
Currency experts commented on recent events that if the Strait of Hormuz becomes unnavigable, it would constitute an unprecedented negative supply shock in energy markets, at least in recent history. At this stage, they view the risks as relatively low, and from their perspective, the closure of the Strait of Hormuz is Iran's last resort, as it would inevitably lead to a strong US military response, and because its domestic economy relies on it. However, desperate times lead to desperate measures, and if Iran's Supreme Leader Ali Khamenei feels he has nothing left to lose, he might choose to risk everything.
On another note, Federal Reserve Chair Powell will testify before Congress this week following last week's monetary policy decision, all of which are influential factors on the direction of the EUR/USD price in the coming days.
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