EUR/USD remains above 1.1520 as Trump’s Iran deadline draws near

Euro Faces Selling Pressure as Markets React to Geopolitical Tensions

The Euro (EUR) is experiencing moderate downward movement against the US Dollar (USD) as financial markets reopen after the Easter holiday. On Monday, the currency pair was unable to break above 1.1571 and is currently trading steadily near 1.1530. This level remains comfortably above the recent support at 1.1505, while market participants closely monitor developments related to the conflict involving Iran.

US President Donald Trump renewed his warnings to Tehran on Monday, stating that the United States could take decisive military action if necessary. This comes as the deadline to reopen the Strait of Hormuz approaches on Tuesday at 8 PM Eastern Time (00:00 GMT Wednesday).

Earlier, both the US and Iran dismissed a 45-day ceasefire proposal put forward by Pakistan. In response, Iran introduced an alternative plan, which President Trump described as “significant” but ultimately insufficient.

Despite ongoing uncertainty, investors are holding out hope for a last-minute diplomatic resolution, which is helping to prevent further losses for the Euro. Meanwhile, Dimitar Radev, a member of the European Central Bank’s (ECB) Governing Council, stated that it is still “too early” to determine whether the ECB will raise interest rates in April, emphasizing the need for additional data amid prevailing uncertainty.

Technical Outlook: Range-Bound Trading Continues

From a technical standpoint, EUR/USD remains confined within a sideways trading range, reflecting a slightly bearish short-term outlook. The Relative Strength Index (RSI) is positioned just below the midpoint of 50, while the MACD histogram is flat near zero with its signal line turning slightly negative, indicating a cautious market sentiment rather than a clear trend.

Immediate support is found around 1.1505, a level that provided a floor for prices on April 2 and 6. A break below this area could open the door to the lows seen on March 30 and 31 near 1.1440, with further downside potential toward the multi-month low at 1.1411 recorded in mid-March.

On the upside, a move above the top of the current channel near 1.1570 would set the stage for a test of the late March and early April highs between 1.1630 and 1.1640. Beyond that, the March 10 peak at 1.1667 stands out as the next significant resistance level.

(This technical analysis was prepared with the assistance of AI tools.)