The EUR/USD currency pair is trading near 1.1680 during Monday’s early European session as upward momentum shows signs of slowing after recent gains. The US Dollar faces downward pressure from fiscal interventions by the US Treasury, providing support for the Euro in the near term. Market participants are exercising caution ahead of two significant developments expected this week from Washington. Traders are awaiting details on upcoming sanctions targeting Iran, which could impact global risk sentiment and energy markets. Additionally, a major policy speech scheduled in the United States is drawing attention as investors seek clarity on potential shifts in economic direction. The pair’s consolidation below the 1.1700 level suggests technical indicators may be pointing to overbought conditions, limiting immediate upside potential despite the weaker Dollar backdrop.
FXnCO Insight
EUR/USD traders should monitor US policy announcements closely this week, as volatility around the 1.1700 resistance level could create short-term positioning opportunities once directional clarity emerges.
Source: FXStreet