EUR/USD Rallies as Dollar Weakens on US-Iran Ceasefire Optimism

EUR/USD and other European currency pairs advanced against the US dollar as improved risk appetite weighed on the greenback following reports of a temporary ceasefire agreement between Washington and Tehran. The easing of geopolitical tensions triggered a broad shift away from safe-haven assets, with traders rotating into higher-yielding and risk-sensitive currencies. The euro and British pound were primary beneficiaries, with EUR/USD pushing higher during the European session. The dollar index softened as markets priced in reduced geopolitical risk premiums that had previously supported USD demand. GBP/USD also posted gains in tandem with the broader risk-on move. Traders should note that ceasefire agreements can be fragile, and any reversal in diplomatic progress could quickly restore dollar strength. Near-term resistance for EUR/USD lies at recent session highs, while support is anchored around pre-announcement levels. The sustainability of this move will depend on whether the ceasefire holds and upcoming US economic data releases.