EUR/USD edged higher on Monday after earlier declines, reaching 1.1516. The US dollar continues to draw support from safe-haven demand amid the ongoing Middle East conflict, which has now entered its fifth week with no signs of resolution.
The Euro to Dollar (EUR/USD) exchange rate trades near 1.1494 on Monday morning, holding steady on the day but close to recent lows after a softer trend through late March. The pair has retreated from levels above 1.16 earlier in the month, with recent price action signalling fading upside momentum.
EUR/USD hovers near 1.1500 as markets brace for a long war
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Looking at the 4-hour chart, the pair settled below 1.1550, the 100 simple moving average (red, 4-hour), and the 200 simple moving average (green, 4-hour). Besides, it traded below a bullish trend line with support at 1.1520.
EUR/USD slides below 1.1500 as Iran warns against potential US ground attacks
A finish around the 1.15103 mark going into this weekend, after the 1.16300 vicinity was seen on Wednesday demonstrates the shifting sentiment that shadows the broad Forex market.
Euro rallied into key technical resistance in January before reversing sharply lower with March marking the second consecutive monthly decline in EUR/USD. Rising inflation concerns, a war in Iran, and a major shift in interest rate expectations have continued to support the US Dollar.
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Risk sentiment remained downbeat in the first half of Friday's session, as the drop in oil prices proved to be short-lived after Trump extended the pause in planned strikes on Iran's energy plants. Crude oil prices climbed a further 4% to extend its surge as fighting continues.