EUR/USD Extends Gains After Hormuz Developments and Trump Signals

EUR/USD moved higher to around 1.1590 as peace expectations improved after signals from Donald J. Trump about ending the conflict. Also, there is news about the UAE joining the military effort to open the Strait of Hormuz. Better risk sentiment weakened the US dollar and supported the euro, while rising inflation expectations in the euro area also increased chances of future ECB rate hikes, adding further support to the pair.

Technically, the breakout above the rectangle encouraged momentum buying and pushed EUR/USD toward the 1.1600 psychological resistance. Next resistance is 1.1675, which is also the 200-day moving average. As long as the price holds above 1.1500, short-term momentum remains bullish.

EUR/USD Daily Chart

However, further upside will depend on progress in peace negotiations, movements in oil prices linked to the Strait of Hormuz, and overall US dollar strength. If tensions ease and energy risks decline, EUR/USD can move higher. But if uncertainty continues, gains may slow near current levels.