Looking at the 4-hour chart, the pair traded as low as 1.1576 and recently started a recovery wave. The pair climbed above the 23.6% Fib retracement level of the downward move from the 1.1787 swing high to the 1.1576 low.
EUR/USD Price Forecast: Trades near 1.1650 as bulls look to extends gains above 23.6% Fibo.
The Euro to Dollar (EUR/USD) exchange rate was unable to break above 1.18 in the first week of May and has steadily lost ground with a retreat to below the 1.16 level amid wider gains for the US currency. Latest — Exchange Rates:Euro to Dollar (EUR/USD): 1.1603Pound to Dollar (GBP/USD): 1.34359Dollar to Yen (USD/JPY):.
The EUR/USD is likely to open the week with a gap higher after US president Donald Trump announced over the weekend that a peace agreement between the United States and Iran has been “largely negotiated”.
EUR/USD's extended decline suggests that corrective rebound from 1.1408 has completed at 1.1848. But as a temporary low was formed at 1.1575, initial bias remains neutral this week first.
Euro slips as Iran deal doubts lift demand for the US Dollar
The Euro managed to push below 1.1600 as US Bond yields rose. The market has started testing of support zone at 1.1530-80 since yesterday.
In what had been another choppy week dominated by contradictory geopolitical headlines surrounding the US-Iran conflict, stock markets have largely taken the more optimistic route, even though crude oil refuses to give back its large geopolitical risk premium built in. Wall Street trades near record highs thanks to a select handful of tech names doing all the heavy lifting, while Europe has been more measured.
Euro: Conflict risks keep pressure against US Dollar – Commerzbank
The trading week is almost over and, for now, one of the most relevant factors is the indecision that has developed around EUR/USD in recent sessions. The pair has barely moved, posting a variation of around 0.2% over the last three sessions, reflecting a lack of clear short-term direction.
Euro pressured by stronger US Dollar amid uncertainty over US-Iran negotiations
The Euro to Dollar (EUR/USD) exchange rate came under fresh pressure after disappointing Eurozone business activity data reinforced concerns over the region's economic outlook and prompted investors to reassess expectations for further European Central Bank tightening. At the time of writing, EUR/USD traded at 1.15854, down 0.34% on.