EUR/USD Supported by Falling Oil Prices and Weaker Dollar

EUR/USD started the week with renewed strength, rising more than 0.4% as easing Middle East tensions and falling U.S. bond yields weakened demand for the U.S. dollar. Hopes for progress in U.S.-Iran negotiations helped push oil prices sharply lower, reducing geopolitical and inflation concerns while also lowering safe-haven demand for the dollar.

At the same time, markets are beginning to expect a calmer Federal Reserve, with rate hikes now seen as less likely in the near term. This shift has pushed U.S. 10-year Treasury yields lower and added further pressure on the dollar, helping support the euro in the short term.

Despite the recent bounce, EUR/USD still remains trapped inside a broader sideways range, showing that markets are still waiting for a stronger catalyst before committing to a larger trend. Momentum indicators such as RSI and MACD remain close to neutral, reflecting continued indecision.

Technically, resistance stands near 1.1680, also the 200 DMA, while support around 1.1590 remains important for maintaining the current bullish recovery.

EUR/USD Daily Chart