The EUR/USD currency pair is climbing toward the 1.1600 level, supported by bullish technical signals. The Relative Strength Index (RSI) on the 4-hour chart remains above 60, and the pair trades near the upper boundary of an ascending channel, indicating upward momentum.
Immediate resistance lies between 1.1600 and 1.1620, followed by levels at 1.1660 and 1.1700. On the downside, support is found around 1.1530-1.1540, near the 20-period simple moving average (SMA) and the channel midpoint, with further support at 1.1500 and 1.1460 (50-period SMA).
Recent market movements have been influenced by geopolitical tensions as Israel and Iran exchanged missile strikes over the weekend, following Israel’s military action against Iran.
Despite the escalation, markets appear less anxious than on Friday. US President Donald Trump urged both nations to reach a peace agreement, signaling hopes for de-escalation.
Meanwhile, hawkish statements from European Central Bank (ECB) officials have bolstered the Euro. ECB policymaker Joachim Nagel noted that current data and forecasts suggest the ECB has achieved its goals. ECB Vice President Luis de Guindos added that the Euro’s appreciation poses limited risk to the inflation target.
In the United States, the Empire State Manufacturing Index is the only major economic data release on Monday. Investors are expected to remain cautious ahead of the Federal Reserve’s monetary policy announcement on Wednesday. However, any negative shift in market sentiment could strengthen the US Dollar in the short term.
Overall, EUR/USD is consolidating gains amid a complex mix of geopolitical risks and central bank signals, with key technical levels guiding near-term price action.
Read more:
