Over the past 24 to 48 hours, the Euro against the US Dollar (EUR/USD) showed a notable rebound, with the closing price rising slightly from yesterday’s 1.17938 to near the 1.18 mark. This volatility was primarily driven by improving geopolitical signals in the Middle East, especially positive indications of resumed peace talks between the US and Iran, which helped boost investors’ risk appetite.

Recent market news highlighted that the EUR/USD uptrend gained momentum as US-Iran military and economic tensions eased. This caused the US Dollar to weaken, particularly amid unsettled oil prices influenced by regional tensions, reducing the appeal of the dollar as a traditional safe-haven currency. Investors shifted preference toward the Euro, reflected in the pair’s continued climb.

For the average investor, this suggests a shifting market mood from safe-haven buying to greater risk-taking, with the Euro’s strength seen as a signal of improving global economic outlook. If peace negotiations continue positively, the Euro may gain further medium-term support. Investors should closely monitor upcoming political and economic developments to adjust their strategies and seize potential opportunities.

Daily Chart

The EURUSD daily chart highlights a sustained medium-to-long term uptrend since the start of the year, with prices consistently trading above both the 50-day and 200-day moving averages. After consolidating between 1.1700 and 1.1830, the pair recently bounced from around 1.1750, signaling renewed strength. Bollinger Bands are expanding, indicating rising volatility. The MACD indicator shows a strong bullish momentum with the fast line above the slow line and continuing to widen, supporting further upside potential.

1H Chart

On the past 3-5 days hourly chart, EURUSD exhibits a clear uptrend, with price repeatedly finding support near the 365-4H EMA, creating solid bounce points. A recent bullish engulfing candlestick pattern suggests buyers are in control for the short term. Both MACD and RSI indicate momentum build-up, increasing the likelihood of continued gains in the near term.

Technical Trend:  Technically, EURUSD is in a clear uptrend, with short to medium term outlook described as ‘cautiously bullish’.

Technical indicators point to a bullish bias for EURUSD, with the 365 EMA acting as strong support. The daily MACD golden cross alongside expanding Bollinger Bands signals positive market sentiment. The short-term bullish engulfing candlestick formation further reinforces buyer confidence. A break above the 1.1830 resistance level could pave the way for the next upward wave.

There are no major economic events today that have a direct or significant impact on EURUSD. European and US data releases such as consumer price indices and industrial production carry medium impact but are unlikely to trigger sharp movements. Traders should instead focus on geopolitical developments and US Dollar movements as key drivers for EURUSD price action.

Resistance & Support

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