Last week, the euro rose to 1.1829 against the U.S. dollar — the highest level since September 2021 — because people were selling dollars.
But then, some traders sold the euro to take profits, so the price dropped a little.
Also, the Vice President of the European Central Bank, De Guindos, said that while the current euro level is not a problem, if it goes above 1.20 dollars, it could make policy decisions harder. So, many people now see 1.20 as a possible limit for how high the euro can go.
This week, the break on tariffs will end. Some people expect that new, higher tariffs may start, which could hurt the European economy.
This may cause the euro to fall from the current high levels.
However, since there are still worries about the U.S. budget deficit and pressure on the central bank to lower interest rates, people may continue to sell the dollar.
Because of this, the euro may not fall much and could stay in a high range.
Even though the euro may not go up easily, it may still be bought as a safer option than the dollar.
Expected EUR/USD range: 1.1640 – 1.1870
Note: This information does not guarantee profits. Please make your own decisions when trading.