Key Moments
- EUR/USD trades with a mild bullish tone around 1.1730–1.1735 during Friday’s Asian session. It pauses after the previous day’s decline.
- However, uncertainty over a potential US–Iran peace deal weighs on sentiment. At the same time, renewed tensions in the Strait of Hormuz support the US Dollar. As a result, euro gains remain limited ahead of US Nonfarm Payrolls.
- Technically, EUR/USD still trades within an ascending channel. It also stays above the 200-period SMA on the 4-hour chart. However, weakening momentum signals caution for bulls.
EUR/USD Holds Above 1.1700 as Dollar Support Caps Upside
EUR/USD posts a mild advance in early Asian trading on Friday. The pair hovers near 1.1730–1.1735 after a modest pullback in the previous session. However, follow-through remains limited.
Meanwhile, uncertainty over a US–Iran peace agreement continues to weigh on sentiment. This backdrop helps support the US Dollar and limits further upside in EUR/USD.
In addition, market participants remain cautious ahead of the US Nonfarm Payrolls (NFP) report. The data could shape expectations for the Federal Reserve’s policy path. Therefore, traders avoid aggressive positioning for now.
At the same time, tensions in the Strait of Hormuz have resurfaced. These developments further support the USD as a safe-haven currency. Consequently, bullish interest in EUR/USD remains restrained.
Technical Picture: Constructive Bias, But Momentum Fades
From a technical view, EUR/USD continues to recover within an ascending channel on the 4-hour chart. It also remains above the 200-period Simple Moving Average (SMA). Therefore, the broader short-term structure stays constructive.
However, momentum signals are less supportive. The Relative Strength Index (RSI) sits just below 50, which suggests consolidation. In addition, the MACD has turned slightly negative. This indicates fading upside momentum.
As a result, further gains may face resistance near 1.1802. This level marks the upper boundary of the channel. A clear breakout above it would be needed for stronger bullish continuation.
Key Levels to Watch
On the downside, immediate support sits near 1.1730. This level is helping stabilize price action. If it fails, attention shifts lower.
Next, the lower channel boundary at 1.1693 comes into focus. Below that, the 200-period SMA at 1.1670 is the key support. Therefore, a break under these levels could signal a deeper correction within the channel.
| Level | Type | Comment |
|---|---|---|
| 1.1802 | Resistance | Upper boundary of ascending channel |
| 1.1730 | Support | Recent price pivot and immediate support |
| 1.1693 | Support | Lower boundary of ascending channel |
| 1.1670 | Support | 200-period SMA on 4-hour chart |
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