• EUR/USD hits session highs at 1.1790, its highest level since the Iran war started
• Hopes of further peace talks between the US and Iran are boosting risk appetite on Tuesday.
• Inflation figures from Germany and Spain confirmed that price pressures accelerated in March.

The (EUR) trades higher against the US Dollar (USD) for the seventh consecutive day on Tuesday. News reports hinting at the possibility of another round of peace talks between the US and Iran have boosted risk appetite, pushing the pair back above 1.1700 to reach session highs at 1.1790, its highest price since the war started.

US President Donald Trump’s decision to block Iran’s ports failed to hurt risk appetite on Monday. Investors were cheered by reports suggesting that channels for US-Iran negotiations remain open, with the option of a second round of talks gaining credibility.

A report released by Reuters on Monday, citing sources related¡ to the negotiations, affirmed that the parties were close to a deal during the weekend and that Iran’s uranium enrichment capabilities were the dealbreaker. The report also affirms that Iran and the US have left the door open for further negotiations despite the abrupt end of last weekend’s talks in Islamabad.

On the macroeconomic front, German and Spanish inflation figures confirmed the positive impact of the war in Iran, ahead of the European Central Bank President, Christine Lagarde’s conference at the IMF meeting later on Tuesday.

In the US, the focus will be on March’s Producer Price Index (PPI), which is also expected to show higher inflationary pressures stemming from the war in Iran.

Technical Analysis: Bulls aim for the 1.1825 area

EUR/USD trades at 1.1794. highlighting a constructive bias. The 4-hour Relative Strength Index (RSI) has reached overbought territory near 72, while the Moving Average Convergence Divergence (MACD) histogram has turned positive, altogether revealing persistent buying pressure, even as the risk of a corrective reaction increases.

Initial resistance is located at the 1.1825 area, which capped gains on February 26 and 27, and is likely to challenge bulls ahead of the February 9,10 and 11 highs, around 1.1930.

On the downside, immediate support lies at the previous top, at the 1.1720-1.1730 area, ahead of the April 8 and 9 lows, near 1.1650, and the ascending trendline support from late March lows, now at 1.1610.

(The technical analysis of this story was written with the help of an AI tool.)