EUR/USD is currently fluctuating around the 1.1750 mark in early trading on Thursday in Europe. As investors await Iran’s feedback on a US peace proposal aimed at regulating Tehran’s uranium enrichment and reopening the Strait of Hormuz, major currency pairs are showing some strength.
Overall, global markets are maintaining a risk-on stance. Axios reports suggest the US and Iran may be nearing an agreement. S&P 500 futures were mostly steady during European trading but saw an increase of almost 1.5% on Wednesday.
The US Dollar Index (DXY), which measures the dollar’s strength against six major currencies, is moving cautiously around the 98.00 level.
Eyes are now on ECB President Christine Lagarde’s upcoming speech and the employment figures set to be released on Friday for the US non-farm payrolls (NFP). Both events are anticipated to provide fresh insights into the monetary policy outlook for the ECB and Federal Reserve.
EUR/USD Technical Analysis
Currently, EUR/USD is hovering near 1.1750. The pair has stayed close to the 20-period exponential moving average (EMA) at 1.1708 for nearly a month, indicating a sideways movement.
The Relative Strength Index (RSI) remains within the 40.00-60.00 range, which suggests some indecision among investors.
In terms of downside support, there’s initial backing close to the 20-day EMA at 1.1708. If the price closes below this level, it could signal a potential loss of bullish momentum and might lead to a pullback towards the April 1 high of 1.1627. Conversely, if the price breaks above the May 6 high of 1.1797, it could target the April 17 high of 1.1850.
