EUR/USD recorded significant gains and climbed to around 1.1610 during Monday's Asian session.
Risk-on sentiment (the return of risk appetite) swept through global financial markets, triggering profit-taking and weakening the US dollar (USD) after Bloomberg released an official report on the success of the comprehensive peace pact in the Middle East signed over the weekend.
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✅ Fundamental Dynamics: Washington-Tehran Peace Declaration & Opening of the Strait of Hormuz
The worst-case scenario of global stagflation that markets had feared for the past four months was instantly shattered by a historic diplomatic breakthrough on Sunday:
- Pakistan's Mediating Role: Bloomberg reported that Pakistani Prime Minister Shehbaz Sharif confirmed that the United States and Iran had officially agreed to a comprehensive peace draft. Both sides declared an immediate and permanent cessation of military operations on all conflict fronts, including a cessation of secondary tensions in Lebanon.
- Donald Trump's Official Announcement: US President Donald Trump stated in a social media post on Sunday, "The deal with the Islamic Republic of Iran is now complete." Trump followed up by granting full authorization for the free reopening of the Strait of Hormuz and the immediate lifting of the US Navy blockade of the Persian Gulf.
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✅ EUR/USD Technical Analysis (Intraday H4)
Technically, the sharp recovery in EUR/USD this morning broke the short-term bearish hold and triggered short-covering:
- 1.1685: Late May Peak (Bulls' Target / Strong Resistance)
- 1.1645: Nearest Horizontal Resistance (June 4-5 High)
- Role Reversal of Support & Resistance Levels: The euro's successful break above 1.1580 (former strong support level from May 21 that briefly became resistance) transformed that area into a new intraday support level.
- Upward Impulse Target: EUR/USD's path of least resistance has shifted to the upside this week. The immediate target for buyers is a test of 1.1645 before opening the way to 1.1685.
Risk-on sentiment (the return of risk appetite) swept through global financial markets, triggering profit-taking and weakening the US dollar (USD) after Bloomberg released an official report on the success of the comprehensive peace pact in the Middle East signed over the weekend.
---------------------------------------------------------------------------------------------------
✅ Fundamental Dynamics: Washington-Tehran Peace Declaration & Opening of the Strait of Hormuz
The worst-case scenario of global stagflation that markets had feared for the past four months was instantly shattered by a historic diplomatic breakthrough on Sunday:
- Pakistan's Mediating Role: Bloomberg reported that Pakistani Prime Minister Shehbaz Sharif confirmed that the United States and Iran had officially agreed to a comprehensive peace draft. Both sides declared an immediate and permanent cessation of military operations on all conflict fronts, including a cessation of secondary tensions in Lebanon.
- Donald Trump's Official Announcement: US President Donald Trump stated in a social media post on Sunday, "The deal with the Islamic Republic of Iran is now complete." Trump followed up by granting full authorization for the free reopening of the Strait of Hormuz and the immediate lifting of the US Navy blockade of the Persian Gulf.
---------------------------------------------------------------------------------------------------
✅ EUR/USD Technical Analysis (Intraday H4)
Technically, the sharp recovery in EUR/USD this morning broke the short-term bearish hold and triggered short-covering:
- 1.1685: Late May Peak (Bulls' Target / Strong Resistance)
- 1.1645: Nearest Horizontal Resistance (June 4-5 High)
- Role Reversal of Support & Resistance Levels: The euro's successful break above 1.1580 (former strong support level from May 21 that briefly became resistance) transformed that area into a new intraday support level.
- Upward Impulse Target: EUR/USD's path of least resistance has shifted to the upside this week. The immediate target for buyers is a test of 1.1645 before opening the way to 1.1685.
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Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.