The Euro (EUR) is ticking higher against the US Dollar (USD) on Monday, but remains below previous lows, now turned into resistance in the 1.1650-1.1670 area, after bouncing from near 1.1600 earlier in the day.
The pair is shrugging off the dismal market sentiment, although high Oil prices are likely to keep upside attempts in check
Comments by a spokesperson of the Iranian Foreign Ministry affirming that Washington and Tehran would be analysing a recent peace proposal sent by Pakistani mediators, lifted market sentiment on Monday and hurt demand for the safe-haven US Dollar. The same source also affirmed that Iranian and Omani technical teams discussed options to restore safe passage through Hormuz last week, which pushed Oil prices down from recent highs, providing some support for the Euro. Previously, US President Donald Trump had warned that “the clock is ticking” on Tehran, after meeting its national security team and speaking with Israeli Prime Minister Benjamin Netanyahu to discuss options in Iran.
Analysts at UOB bank expect the pair to remain vulnerable, aiming for the 1.1570 area: “While the decline is oversold, strong downward momentum continues to suggest downside risk for EUR. From here, a clear break below 1.1600 will shift the focus to 1.1570. We will maintain our negative EUR view as long as it holds below the ‘strong resistance’ at 1.1685.” Technical Analysis: A dead cat’s bounce for the Euro The EUR/USD is ticking up on Monday but maintains a bearish near-term tone with price holding below a dense band of horizontal resistance clustered between 1.1650 and 1.1675.