EUR/USD rebounds to near 1.1700, but is still holding opening losses.
The failure of US-Iran peace talks has prompted the risk-off mood.
US President Trump announces the blockade of Iranian ports.
The EUR/USD pair recovers a majority of its opening losses, but is still 0.2% down to near 1.1700 during the late European trading session on Monday. The major currency pair is still under pressure as renewed geopolitical tensions have prompted a risk-off mood.
The S&P 500 is expected to open lower, considering weakness in futures overnight, reflecting weakness in investors’ risk appetite.
Middle East conflicts have revived as the first round of US-Iran talks has failed, following Tehran’s refusal to give up its nuclear ambitions.
Meanwhile, US President Donald Trump has announced that it will blockade Iranian ports, which will begin on April 13 at 10:00 AM ET, 14:00 GMT.
The risk-off market sentiment has improved the safe-haven demand of the US Dollar (USD). As of writing, the US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, trades 0.2% higher around 99.00.
EUR/USD technical analysis
EUR/USD trades lower at around 1.1700 as of writing. The pair holds a constructive bullish bias as it trades above the 20-day exponential moving average (EMA) at 1.1611 and the 38.2% Fibonacci retracement at 1.1671 as nearby support. The Relative Strength Index (14) at 57.6 is comfortably above the neutral 50 line, hinting that upside momentum is building while remaining short of overbought territory.
On the topside, initial resistance is aligned with the 50.0% Fibonacci retracement at 1.1750, followed by the 61.8% level at 1.1830. Looking down, immediate support is seen at the 38.2% retracement at 1.1671, ahead of the 20-day EMA at 1.1611; a deeper pullback would expose the 23.6% retracement at 1.1572 and, if broken, the structural floor around 1.1413.
(The technical analysis of this story was written with the help of an AI tool.)
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