The US on Monday demanded Iran dropping its nuclear program and pulling out of the Syrian civil war. The US also threatened it will carry out severe economic sanctions if not given the appropriate attention. However, Pompeo said if Iran made major changes, the US is willing to ease its aggressive stance towards the country and even support there’re economic re-establishment with the world. Iran responded by stating the US has violated the International nuclear deal. Further negative comments on the matter could weaken the USD and could strengthen Oil prices.
EUR/USD traded higher yesterday moving towards the 1.1806 resistance level but did not breach it. It is our opinion that the advancement of the pair could be due to the weakening of the USD after Mike Pompeo statements on the Middle East issue. We see the case for EUR/USD to trade in a sideways movement between the 1.1806 resistance level and the 1.1715 Support level for the rest of the day.