FX.co ★ EUR/USD

The euro fell against the US dollar on Tuesday, trading below 1.1750 after getting blocked again near the 1.1790 area on Monday. On the H1 chart, the 200 SMA sits at 1.1737, acting as a support level just below the current price. The 50 SMA on the same chart is at 1.1766, working as a resistance ceiling just above. On the H4 chart, the 200 SMA is at 1.1680, serving as a deeper support zone. The 50 SMA on the H4 chart is at 1.1735, adding another layer of support just under the current price. The current price is trading above the H4 50 SMA and the H1 200 SMA, but remains below the H1 50 SMA at 1.1766. This tells us that bulls are holding their ground but face a key test just above. On the downside, the key support areas are as follows. First support is at 1.1720 to 1.1730, near Friday's low and the H4 50 SMA zone. Second support is at 1.1680 to 1.1690, where the H4 200 SMA sits as a strong floor. Third support is at 1.1645 to 1.1675, a key area that blocked selling several times in April. More support levels include 1.1620 to 1.1630, 1.1600 to 1.1610, and 1.1580 to 1.1590 as deeper floors. On the upside, the key resistance areas are as follows. First resistance is at 1.1760 to 1.1770, where the H1 50 SMA sits as the first hurdle. Second resistance is at 1.1790 to 1.1800, marking the May 1, 6, and 8 highs and a major supply zone. Third resistance is at 1.1840 to 1.1850, representing the April high and a strong barrier. More resistance levels include 1.1880 to 1.1890, 1.1900 to 1.1910, and 1.1950 to 1.1960 as higher targets.

Market worries about the fragile US-Iran ceasefire have boosted the safe-haven dollar. Investors are also staying cautious ahead of the US Consumer Price Index report, which is adding more support to the greenback. Market sentiment turned weaker on Tuesday after President Trump said the US-Iran ceasefire is in a "dangerous" state. Some of his aides say the president is frustrated with Iran's attitude and has put the possibility of restarting combat operations back on the table. The dollar's risk is tilted to the upside because higher-than-expected CPI data push more Fed policymakers toward a hawkish stance. In the euro zone, the ZEW economic sentiment index released earlier on Tuesday showed that investor views on the German economy improved from -17.2 in April to -10.2 in May, beating market expectations of -19.8. However, sentiment on current economic conditions fell to a five-month low of -77.8, down from -73.7 in April. These data had a limited impact on the euro. The most likely path ahead is more downside if the dollar stays strong. The key levels to watch are support at 1.1725 and resistance at 1.1790. A break below 1.1725 would target 1.1680 and then 1.1645 to 1.1675. A break above 1.1790 would target 1.1850. For traders, the 1.1790 to 1.1800 zone is the key barrier. A daily close above would signal a bullish breakout, with targets at 1.1850. A rejection would keep the pair range-bound with a bearish bias toward 1.1725.