Today, Friday, the EUR/USD pair is attracting buyers on declines, moving toward its highest level since May 14, which was reached the previous day. The bulls are once again seeking to break above 1.1700 before making further investments. Despite this, current spot prices continue to show solid weekly gains and maintain the uptrend that began at the start of the month amid broad-based weakness in the U.S. dollar. The U.S. Dollar Index (DXY), which tracks the dollar against a basket of currencies, remains near a three-month low as traders scale back expectations of an imminent Federal Reserve (Fed) rate hike amid slowing inflation. In addition, expectations that inflation driven by rising energy prices will prompt the European Central Bank (ECB) to adopt a tighter monetary policy are supporting the single currency and the EUR/USD pair.

Meanwhile, the market's reaction to the U.S. Treasury's initiative to increase the volume of certain long-term bond buyback operations appears to be weakening amid inflation concerns related to rising energy prices. In addition, the hawkish FOMC minutes released on Wednesday support the possibility of at least one rate hike in 2026 and contribute to elevated U.S. Treasury yields, which supports the U.S. dollar.

Additionally, tensions between the United States and Iran in the Strait of Hormuz continue to create a geopolitical risk premium and limit declines in safe-haven assets such as the U.S. dollar. Regarding the situation in the Middle East, U.S. President Donald Trump has threatened Iran with economic warfare and broad isolation, warning of consequences for any country willing to provide assistance to Tehran.

This may limit the actions of bears in the market seeking to weaken the dollar and may also limit the upward potential of EUR/USD.

Today, to identify the best trading opportunities, it is worth waiting for the release of the preliminary U.S. PMI indicators. Moreover, expected geopolitical developments may continue to influence global financial markets, once again increasing demand for the U.S. dollar as a safe-haven asset and creating short-term trading opportunities for EUR/USD on the final trading day of the week.

From a technical perspective, EUR/USD is rising and trading above the 200-day simple moving average (SMA). This indicates that potential pullbacks are likely to attract buyers, while the broader recovery from the June lows remains intact. The oscillators are positive, confirming the bulls' advantage in the market. However, the Relative Strength Index (RSI) is overbought, indicating the possibility of bullish consolidation or a pullback.