|

EUR/USD Price Forecasts: Struggling to regain 1.1400 amid geopolitical uncertainty

  • EUR/USD attempts to regain the 1.1400 line after bouncing at 1.1320 lows.
  • Uncertainty about the status of the Strait of Hormuz is putting the ceasefire into question and weighing on risk appetite.
  • The pair is in a corrective recovery, likely to meet significant resistance in the 1.1500 area.

The Euro (EUR) ticks higher against the US Dollar (USD) on Monday but is struggling to confirm a move above 1.1400, with the 13-month low in the 1.1320 area still within relatively close reach. The uncertainty surrounding the US-Iran ceasefire and investors’ caution ahead of a series of US inflation figures are keeping Euro recovery attempts limited so far.

Latest reports affirm that the US and Iran have agreed to stop the hostilities that shook the fragile ceasefire this weekend, but the status of the peace negotiations remains unclear. Iranian authorities announced talks with Oman to manage the key Strait of Hormuz, and the US Navy has raised the threat level in the waterway to “significantly high”, which is keeping investors on edge.

çIn the economic calendar, the highlight today will be the speech of European Central Bank (ECB) President  Christine Lagarde at the opening of the central bank’s forum in Sintra, Portugal. Traders, however, are likely to keep a wait-and-see stance, awaiting the release of a batch of US employment figures, to shed further light on the Federal Reserve’s monetary policy.

Technical Analysis: Corrective recovery for the Euro

Chart Analysis EUR/USD

EUR/USD trades at 1.1400, on a corrective rebound from 13-month lows, at 1.1320, with the broader bearish trend intact. Momentum indicators are bouncing up from oversold levels as the Relative Strength Index (14) reaches the mid-50s and the Moving Average Convergence Divergence (MACD) turns positive.

The pair, however, remains contained below a previous support, in the area of 1.1430, which is closing the path towards the 1.1500 region (June 8, 11 lows), and a strong resistance area between 1.1620 and 1.1660, which capped bulls several times in May and June.

On the downside, initial support is at the mentioned 13-month lows near 1.1320. Further down, bears might be tempted to revisit the late May 2025 lows, at .1210.

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

Euro Price Today

The table below shows the percentage change of Euro (EUR) against listed major currencies today. Euro was the strongest against the Japanese Yen.

USDEURGBPJPYCADAUDNZDCHF
USD-0.14%-0.13%0.08%-0.02%-0.03%-0.17%-0.13%
EUR0.14%0.00%0.22%0.11%0.14%-0.01%0.01%
GBP0.13%-0.01%0.21%0.11%0.11%-0.05%0.00%
JPY-0.08%-0.22%-0.21%-0.10%-0.12%-0.28%-0.21%
CAD0.02%-0.11%-0.11%0.10%-0.02%-0.17%-0.14%
AUD0.03%-0.14%-0.11%0.12%0.02%-0.14%-0.08%
NZD0.17%0.00%0.05%0.28%0.17%0.14%0.05%
CHF0.13%-0.01%-0.01%0.21%0.14%0.08%-0.05%

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 Euro from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent EUR (base)/USD (quote).

Author

Guillermo Alcala

Graduated in Communication Sciences at the Universidad del Pais Vasco and Universiteit van Amsterdam, Guillermo has been working as financial news editor and copywriter in diverse Forex-related firms, like FXStreet and Kantox.

More from Guillermo Alcala
Share:

Editor's Picks

GBP/USD recovers above 1.3200 as USD loses traction

GBP/USD is rebounding toward 1.3250 in the European session on Monday. The pair recovers ground as the US Dollar uptrend falters and traders resort to profit-taking ahead of Tuesday's US-Iran peace talks and Fed Chair Kevin Warsh's appearance on Wednesday at the ECB Forum.

EUR/USD hold gains around 1.1400 amid US Dollar weakness

EUR/USD is attempting a tepid bounce above 1.1400 in European trading on Monday, helped by a broadly weaker US Dollar. Traders continue to assess the developments surrounding talks to end the US war with Iran. The European Central Bank's annual forum and the US June employment data will be the highlights later this week.

Gold stays in red near $4,050 as US-Iran clash revives inflation fears

Gold price remains in the negative territory around $4,050 in Monday's European trading. The bullion struggles as military clashes between the United States and Iran in the strategic Strait of Hormuz have revived inflation concerns, bolstering Fed rate hike expectations. However, a broad US Dollar retreat is helping limit Gold's downside.

Bitcoin four-year cycle: BTC risks 75% drawdown with four months of bear market still ahead

Bitcoin price continues to trend downward below the $60,000 support zone after losing over 50% of its value since the $126,199 high in October. Bitcoin’s four-year cycle, measured from cycle tops to bottoms, suggests that four months of a bear market are still ahead.

How Kevin Warsh upended the game plan for Gold
Something is breaking inside the Federal Reserve's new strategy, signaling a massive regime change for macro markets. Under the leadership of newly appointed Fed Chair Kevin Warsh, the traditional framework of forward guidance and predictable rate paths could be dismantled soon.
Regime change: Inside Kevin Warsh's first move to make the Fed unreadable on purpose

The rate did not move. That was the least interesting thing about Kevin Warsh's first meeting in charge of the Fed. The FOMC held its benchmark at 3.50%-3.75% for the fourth straight meeting, exactly as priced, and then the new chair used his first press conference to dismantle the machinery the market has leaned on for a decade.