EUR/USD Price Outlook: Potential for further gains above 1.1800 as risk appetite strengthens

EUR/USD Climbs to Six-Week High Amid Ceasefire Hopes

The EUR/USD currency pair is trading strongly near 1.1760 in early European hours on Tuesday, marking its highest point in a month and a half. This upward momentum is fueled by positive market sentiment, as investors grow optimistic about the possibility of a lasting ceasefire between the United States and Iran.

At the same time, S&P 500 futures are maintaining Monday’s rally, hovering near 6,890, which highlights continued appetite for riskier investments. Meanwhile, the US Dollar Index (DXY)—which tracks the dollar against a basket of six major currencies—has slipped to a fresh six-week low around 98.30.

Recent remarks from US President Donald Trump and Vice President JD Vance suggest that the US-Iran talks in Pakistan have not completely broken down, keeping hopes alive for a permanent truce.

Additionally, Iran was willing to pause uranium enrichment for five years during the negotiations, while the US pushed for a 20-year halt.

Looking ahead, traders are turning their attention to the upcoming Israel-Lebanon meeting in Washington, scheduled for 15:00 GMT.

Technical Overview: EUR/USD

Currently, EUR/USD is holding firm near 1.1760, maintaining a bullish outlook in the short term. The pair is trading above its 20-day Exponential Moving Average (EMA) at 1.1631, which continues to support the recent upward trend.

The 14-day Relative Strength Index (RSI) is positioned around 63.00, indicating ongoing bullish momentum without yet reaching overbought levels. This suggests that buyers may still have room to push the pair higher.

On the support side, the 20-day EMA at 1.1631 serves as the first key level. A drop below this point could signal weakening momentum and open the door for a deeper pullback toward previous lows near 1.1500. As long as the pair stays above the 20-day EMA, the overall technical picture favors buying on dips rather than aggressive selling. On the upside, EUR/USD could continue its advance toward the February 23 peak at 1.1835, with the next target at the February high of 1.1930.

(This technical analysis was generated with the assistance of AI tools.)