EUR/USD holds losses around 1.1750 as investors pare back hopes of a swift end to the Middle East war.
Trump extends the ceasefire but keeps the blockade in the Strait of Hormuz.
Upbeat US Retail Sales and testimony from Fed's Chair Nominee Warsh boosted the USD's recovery on Tuesday.
The Euro (EUR) posts marginal gains against the US Dollar (USD) on Wednesday. The pair, however, remains near the bottom of the last few days’ trading range, around 1.1750, as hopes of a positive outcome from the US-Iran peace negotiations vanish.
US President Trump has extended the ceasefire unilaterally until the end of the negotiation process with Iran, but maintains the blockade on the Strait of Hormuz, which has been considered an act of war and a violation of the fragile ceasefire by Iranian authorities.
Tehran is keeping the suspense about its presence at the next round of peace talks, while the Islamic Revolutionary Guard has stepped up its tone against the US, threatening with “crushing blows” against “the enemy’s remaining assets”, according to a report by Iran’s Tasnim news Agency cited by The Guardian.
The pair dropped nearly 0.4% on Tuesday, hit by downbeat news coming from the Middle East and a stronger US Dollar. Upbeat US Retail Sales data and, above all, a convincing testimony by the Fed Chair Nominee, Kevin Warsh, at the US Senate confirmation hearings, provided a fresh boost to the Greenback.
Technical Analysis: The bullish trend is losing momentum
EUR/USD maintains the constructive bias from late-March lows intact, but recent price action suggests that bulls might be giving up. Technical indicators on the 4-hour chart hint at a neutral to bearish momentum. The Relative Strength Index remains below the 50 line, and the Moving Average Convergence Divergence (MACD) indicator holds in negative territory, suggesting a loss of upside pressure.
The pair edges higher on Wednesday but remains capped below 1.1760 so far, which leaves the weekly highs near 1.1790 at a certain distance. Further up, the April 17 high, at the 1.1850 area, seems out of reach this Wednesday.
On the downside, immediate support lies at Tuesday's low, near 1.1720. Below here, the upward trendline support from the March 30 low, now around 1.1700, and the mid-April lows, between 1.1645 and 1.1675, will come into view.
(The technical analysis of this story was written with the help of an AI tool.)
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