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EUR/USD Price Forecast: Declines below 1.1550 as Trump’s Iran war update boosts USD

  • EUR/USD meets with heavy supply as USD strengthens after Trump’s Iran war update.
  • Firming Fed rate hike bets further benefit the USD and back the case for deeper losses.
  • The intraday failure near the 200-period EMA on the H4 validates the negative outlook.

The EUR/USD pair struggles to capitalize on its gains registered over the past two days, reaching the weekly top the previous day, and attracts heavy selling during the Asian session on Thursday. Spot prices drop below the 1.1550 level in the last hour amid the emergence of fresh buying around the safe-haven US Dollar (USD) as US President Donald Trump's update on the Iran war dampens de-escalation hopes.

Addressing the nation, Trump threatened that Iran would be hit extremely hard over the next two to three weeks and would be brought to the Stone Age if no deal is reached. Trump further added that Iranian energy infrastructure remains a possible target, triggering a sharp rally in Crude Oil prices and fueling inflationary concerns. This, in turn, bolsters bets for a rate hike by the US Federal Reserve (Fed) and turns out to be another factor supporting the USD, which is seen exerting pressure on the EUR/USD pair.

From a technical perspective, the failure to find acceptance above the 200-period Exponential Moving Average (EMA) on the 4-hour chart and a pullback from the 1.1620-1.1625 supply zone favors bearish traders. Moreover, the Moving Average Convergence Divergence (MACD) indicator slips back toward the zero line after a brief positive extension, with the histogram contracting and hinting at fading bullish momentum. Adding to this, the Relative Strength Index (RSI) eases to around 50, reinforcing a loss of directional conviction after failing to sustain overbought proximity earlier in the move.

Meanwhile, initial support emerges at 1.1520, guarding the recent reaction low near 1.1485, where a break would expose the 1.1450 zone as the next downside objective. On the topside, immediate resistance stands at 1.1580 ahead of the 1.1610–1.1620 band, where prior swing highs converge with the 200-period exponential moving average to define a key barrier. A sustained move above this upper resistance zone would be needed to revive a clear bullish bias, while failure to hold 1.1520 would shift focus back toward the mid-1.1400s.

(The technical analysis of this story was written with the help of an AI tool.)

EUR/USD 4-hour chart

Chart Analysis EUR/USD

US Dollar Price Today

The table below shows the percentage change of US Dollar (USD) against listed major currencies today. US Dollar was the strongest against the New Zealand Dollar.

USDEURGBPJPYCADAUDNZDCHF
USD0.42%0.53%0.35%0.24%0.67%0.70%0.45%
EUR-0.42%0.11%-0.09%-0.20%0.26%0.29%0.02%
GBP-0.53%-0.11%-0.19%-0.26%0.16%0.20%-0.08%
JPY-0.35%0.09%0.19%-0.10%0.32%0.35%0.10%
CAD-0.24%0.20%0.26%0.10%0.42%0.44%0.20%
AUD-0.67%-0.26%-0.16%-0.32%-0.42%0.03%-0.26%
NZD-0.70%-0.29%-0.20%-0.35%-0.44%-0.03%-0.26%
CHF-0.45%-0.02%0.08%-0.10%-0.20%0.26%0.26%

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).

Author

Haresh Menghani

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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