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The EUR/USD pair has experienced a two-day pullback to 1.1710, retreating from its April 2026 high of 1.1847. This decline follows heightened geopolitical tensions between the US and Iran, prompting investors to reassess risk appetite. Despite the short-term correction, analysts maintain a bullish outlook, citing technical indicators and the potential for renewed buying interest if tensions ease. The pair remains above key support levels, suggesting a possible rebound.
For forex traders, the EUR/USD pullback offers a strategic entry point for long positions, particularly if the 1.1700 level holds. The US-Iran situation remains a critical risk factor, with any escalation likely to trigger volatility. Traders should monitor central bank statements and geopolitical developments for directional clues.
Looking ahead, the focus will shift to the European Central Bank’s policy stance and US inflation data. A break above 1.1850 could reignite bullish momentum, while a sustained drop below 1.1650 might signal deeper corrections. Traders are advised to use stop-loss orders to mitigate risks amid heightened uncertainty.
