EUR/USD stays firm amid Iran talks, hawkish Fed tone

💡 DMK Insight

EUR/USD’s dip to 1.1804 signals a risk-off sentiment, and here’s why that matters: The modest decline reflects broader market anxieties, particularly with escalating tensions between the US and Iran. This geopolitical uncertainty often drives traders towards the safety of the US dollar, which explains the Greenback’s strength. For day traders, this could mean shorting EUR/USD, especially if it breaks below 1.1800, a psychological level that could trigger further selling. Watch for any news developments or economic data releases that could influence risk sentiment, as these will likely impact the pair’s movement. On the flip side, if the pair rebounds and holds above 1.1850, it could indicate a temporary stabilization, offering a potential long entry for swing traders. Keep an eye on the 1.1800 support level; a sustained break below could lead to a deeper correction. Conversely, a bounce could signal a return to bullish sentiment, especially if risk appetite improves in the coming sessions.