EUR/USD Strengthens as Dollar Weakens After Trump Comments

Comments from Donald Trump about suspending possible military action against Iran have reduced safe-haven demand for the US dollar. EUR/USD has moved strongly higher and is now trading around 1.1680, well above the earlier rectangle breakout zone near 1.1550. The upside move has been supported mainly by de-escalation hopes in the Iran conflict, which weakened the US dollar across major currency pairs and helped strengthen the euro.

Technically, the breakout above the rectangle pattern confirmed a bullish near-term structure, allowing price to push through the earlier targets near 1.1626 and toward the 1.1675 area around the 200-day SMA. This keeps the recovery momentum intact for now. Today's price retraced from the uptrending line started in November 2025, which is why this trendline has become near-term support, and a break above this zone could open the gates for wider recovery towards 1.1800s.

On the downside, 1.1626 has become a near-term support level. A move back below this zone would weaken the bullish outlook and could open the door toward 1.1550 and 1.1510 and even 1.1410 (march low). For now, as long as the price stays above support and geopolitical tensions remain calm, the short-term bias remains bullish for EUR/USD.

EUR/USD Daily chart