EUR/USD extends gains as Dollar slides to fresh six-week lows now
The trading week begins with EUR/USD posting a decline of more than 0.4% in the short term, driven by a renewed strengthening of the U.S. dollar. This move follows the breakdown in Middle East negotiations, which has revived risk sentiment in markets and prevented the euro from maintaining the consistent demand seen in the previous week.
EUR/USD: Safe haven Dollar holds gains – Rabobank
Oil's gap back above $100 a barrel has set the tone for markets today, causing stocks, bonds, bitcoin and major foreign currencies to weaken, while bond yields and the dollar have risen. This comes after Donald Trump ordered a blockade of the Strait of Hormuz, following a weekend of stalled US-Iran peace talks.
The EUR/USD bullish breakout didn't even last a full week. After climbing to 1.1740 on optimism that US-Iran talks would succeed, the pair gapped down overnight Sunday and is now hovering near 1.1685.
EUR/USD: Hungarian politics offer near-term support – ING
Our intraday forex analysis covers EURUSD, NZDUSD, and US 30, focusing on key support and resistance levels and potential market direction. EURUSD sliding lower The Euro retreated as the Dollar gained traction across the board.
EUR/USD holds near 1.1700 despite the deteriorated market sentiment
EUR/USD: Market pricing de-escalation hopes – Commerzbank
EUR/USD Price Forecast: Rebounds to near 1.1700 as bullish bias prevails
Looking at the 4-hour chart, the pair settled above the 1.1665 level, the 100 simple moving average (red, 4-hour), and the 200 simple moving average (green, 4-hour). There was a clear move above a key contracting triangle with resistance at 1.1610.
Live Chart and Current setup EUR/USD is not trading with the regular fundamentals; it is not trading as a Europe story or a US story, but rather as a war-driven, energy price-inflation-rates regime, where the US-Iran war headlines are currently driving narratives around inflation, which has now raised discussions on how central banks will position their monetary policy. The EUR/USD can now be described as a proxy FX pair for the energy shock/rate differentials story.