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EUR/USD rose on Monday following a correction, reaching 1.1759, as the US dollar partially recovered from last week's losses. The dollar found support from increased demand for safe-haven assets amid escalating tensions between the US and Iran, including reports of a US Navy operation detaining an Iranian ship in the Gulf. The pair's movement reflects mixed signals, with geopolitical risks bolstering the dollar while broader market uncertainty limits its gains.
For traders, the unstable outlook highlights the importance of monitoring geopolitical developments and central bank policies. The US-Iran conflict could drive further volatility in the dollar, while the European Central Bank's (ECB) dovish stance and the Federal Reserve's potential rate decisions add layers of complexity. Safe-haven demand may continue to influence the USD's performance in the short term.
Looking ahead, investors should watch for updates on the Gulf tensions and statements from the ECB and Fed. Technical levels around 1.1759 and 1.1650 will be critical for EUR/USD. A break above 1.18 could signal renewed bullish momentum, while a drop below 1.16 may indicate bearish pressure.
