EUR/USD is trading near the 1.1730 level in Friday’s delayed U.S. session, cutting off almost all of its intraday gains after U.S. President Donald Trump threatened to raise the European Union (EU) tariff on cars and trucks from 15% to 25% and said he was dissatisfied with the latest offer sent by Iran to end the war.
Iran has accepted Pakistan’s offer of peace talks to try to reach an agreement with the US, although details and Tehran’s demands remain unknown. US President Trump stated that “we have made progress in talks with Iran, but I am not sure we will be able to reach an agreement” and added that he is not satisfied with the current proposal because Iran is asking for things that it “is not willing to agree to”.
When asked about potential missile attacks on Iran, US President Trump replied: “Why would I tell you that?”, adding to uncertainty. Increased uncertainty over the fate of the latest offering has turned the U.S. dollar (USD) into a safe-haven asset as it rebounds from a two-week low.
Short-term technical analysis:
On the four-hour chart, EUR/USD is trading at 1.1730, oscillating between nearby moving averages and maintaining a broadly neutral bias. The pair is holding above the 20-period uncomplicated moving average (SMA) at 1.1713, which provides moderate downside support, but remains capped by the 100-period SMA at 1.1736 and the horizontal barrier at 1.1744. A relative strength index around 53 indicates moderate positive momentum, but the proximity to overall levels suggests confined upside unless buyers are able to force a sustained break higher.
Upside, immediate resistance is at the 100-period SMA at 1.1736, followed by a horizontal hurdle at 1.1744. A break of these levels would open the way towards 1.1757 and then 1.1785. On the downside, initial support is seen at the nearby horizontal low at 1.1729, with the 20-period SMA at 1.1713 strengthening the underlying demand area. A break below this latter level in the brief term would mean a deeper correction phase.
(The technical analysis for this story was written with the lend a hand of an AI tool.)
