FX.co ★ EUR/USD

The currency pair EUR/USD is currently heading south after yesterday's surge on news of negotiations and reconciliation between the US and Iran, causing the US dollar to drop to the level of 1.1715 per euro. Currently, the price is gradually decreasing, and the bears have already tested the support at 1.1650, while the Stochastic indicator is close to the lower boundary of the working zone. However, we do not see any signs from the four-hour "Zigzag" indicator indicating the end of the decline, and I believe it is indeed premature. I personally expect the price of EUR/USD to drop at least to the area of the pair's former highs, marked by the "Zigzag" indicator at the level of 1.1630. Today, this level is further reinforced by the 14-period moving average line, so a bounce from there would be the most optimal scenario for the development of the ascending medium-term trend that we have been observing since March 13 of this year.