Euro Rises Past 1.1650 as US-Iran Peace Talks Advance

USD Safe-Haven Bid Fades on Iran Deal Progress

EUR/USD is pushing higher, trading near 1.1650, as developments in US-Iran peace negotiations reduce safe-haven demand for the US dollar. The catalyst is straightforward: a thaw in geopolitical tensions lowers the premium traders assign to the dollar as a crisis hedge, allowing the single currency to recover ground lost during the earlier risk-off phase.

The move matters now because it breaks a period of tight range-trading in the pair. A sustained hold above 1.1650 would test the next resistance band that has capped euro gains since mid-May. The immediate question is whether the Iran-related dollar weakness has enough follow-through to shift the short-term trend, or whether it is a positioning adjustment ahead of heavier macro data.

EUR/USD Resistance Levels and the PCE Test

For traders watching the pair, the zone around 1.1680–1.1700 is the first meaningful barrier. A break above that area would signal that the dollar sell-off has depth beyond the headline reaction. If EUR/USD stalls below that zone, the move will look like a tactical repositioning rather than a directional shift.

On the macro calendar, the May 28 Core PCE release is the next major test for the pair. That data is the Federal Reserve’s preferred inflation gauge and will influence expectations for the rate path. A hot print would reinforce the dollar’s yield advantage and undo some of today’s move. A soft print would validate the euro’s gains and open the door to a test of 1.1700.