EUR/USD Breaks Higher After Donald J. Trump Peace Signals

EUR/USD has now broken above the rectangle resistance and is trading near the 1.1500 area, which confirms short-term bullish momentum after peace expectations improved following signals from Donald J. Trump about ending the war, even without reopening the Strait of Hormuz.

This breakout supports further upside in EUR/USD in the near term, as markets are reacting positively to easing conflict risks. However, negotiations are still not confirmed, and high oil prices plus a strong US dollar continue to limit the strength of the move.

The breakout is a clear price action supported by this positive sentiment for EURUSD. So, we can go long with the target, similar to the width of the rectangle. But higher continuation will depend on whether peace progress becomes clearer and energy risks start easing.

EUR/USD 1 Hour Timeframe