Because the chance of the U.S. joining the Iran conflict is rising, traders are buying the U.S. dollar as a safe asset. The euro fell almost 100 points, from around 1.1580 to 1.1475, losing the gains made after last week’s U.S. inflation data.
However, because trade talks between the U.S. and Europe are going well and the European Central Bank (ECB) may stop cutting interest rates, the euro is expected to stay strong.
Today, the dollar may stay strong, but the euro’s fall may not be big. If the euro stops falling around 1.14, where technical indicators show support, some traders may start buying again.
EUR/USD Expected Range: 1.1420 – 1.1540
Please note: The above is not a guarantee of profit. Make your own decisions when trading.