The EUR/USD pair trades firmly near 1.1760 during the early European trading session on Tuesday, the highest level seen in six weeks. The major currency pair reflects strength as market sentiment remains risk-on due to optimism towards a permanent ceasefire between the United States (US) and Iran.
During the press time, S&P 500 futures hold onto Monday’s gains around 6,890, exhibiting strong demand for riskier assets. The US Dollar Index (DXY), which gauges the Greenback’s value against six major currencies, posts a fresh over six-week low around 98.30.
The comments from US President Donald Trump and Vice President (VP) JD Vance have signaled that US-Iran negotiations in Pakistan were not a complete failure, and prospects of a permanent ceasefire are intact.
Meanwhile, a report from the New York Times (NYT) has signaled that Iran was prepared to halt uranium enrichment for five years during negotiations in Pakistan, while the US insisted on a 20-year suspension.
Going forward, investors will focus on the Israel-Lebanon meeting in Washington, which is scheduled at 15:00 GMT.
EUR/USD technical analysis
EUR/USD demonstrates strength at around 1.1760 at the press time. The pair holds a bullish near-term bias as spot remains above the 20-day Exponential Moving Average (EMA) at 1.1631, keeping recent gains underpinned.
The 14-day Relative Strength Index (RSI) at around 63.00 leans toward bullish momentum without yet entering overbought territory, suggesting buyers still have room to press the advance.
On the downside, initial support is located at the 20-day EMA around 1.1631, where a break would hint at fading upside pressure and a deeper correction toward prior lows around 1.1500. As long as EUR/USD holds above the 20-day EMA, the broader technical structure favors dip-buying rather than aggressive selling. Looking up, the pair could extend the ongoing rally towards the February 23 high around 1.1835, followed by the February high around 1.1930.
(The technical analysis of this story was written with the help of an AI tool.)
Source: https://www.fxstreet.com/news/eur-usd-price-forecast-sees-more-upside-above-11800-as-risk-on-intensifies-202604140607
