The currency pair climbs as safe-haven demand for the USD declines amid hopes for a US-Iran agreement.
EUR/USD opened the week trading near 1.1650, extending gains as bulls target a break above the 23.6% Fibonacci retracement level. The move follows a bullish gap at the start of trading, driven by renewed optimism over a potential US-Iran peace deal, which has reduced demand for the safe-haven US Dollar.
The pair’s upward momentum builds on recent strength, though it remains below key resistance levels. Prior sessions saw limited volatility, with traders awaiting fresh catalysts. Comparable periods of geopolitical easing have historically weighed on the USD, supporting EUR gains.
Market reaction has been muted but positive, with the pair holding near session highs as traders assess the durability of the geopolitical developments.