EUR/USD Price Forecast: Signals reduced volatility near 1.1750

EUR/USD remains flat near 1.1750 as traders stay cautious over Iran’s response to the US peace proposal. Risk appetite continues to improve amid growing optimism surrounding a potential US-Iran agreement, while investors focus on upcoming remarks from ECB President Christine Lagarde and the US April Nonfarm Payrolls report for fresh market direction.

EUR/USD moves within a narrow range near 1.1750 in Thursday’s early European session as investors await Iran’s response to the US peace proposal, which includes restrictions on Tehran’s uranium enrichment activities and the reopening of the Strait of Hormuz.

Market sentiment remains broadly positive after reports suggested the US and Iran are nearing a potential agreement. Although S&P 500 futures trade little changed in Europe, the index rallied nearly 1.5% in the previous session.

Meanwhile, the US Dollar Index (DXY), which measures the Greenback against a basket of six major currencies, stays cautious around the 98.00 level.

Traders are now turning their attention to Friday’s key events, including remarks from ECB President Christine Lagarde and the US April Nonfarm Payrolls report. Both releases are expected to provide fresh signals on the future monetary policy paths of the ECB and the Federal Reserve.

EUR/USD: Technical outlook points to cautious consolidation

EUR/USD continues to consolidate near 1.1750 at the time of writing. The pair has hovered around the 20-period Exponential Moving Average (EMA), currently at 1.1708, for nearly a month, signaling a lack of clear directional momentum.

Meanwhile, the Relative Strength Index (RSI) remains trapped within the 40.00–60.00 range, highlighting ongoing market indecision.

On the downside, immediate support is seen around the 20-day EMA at 1.1708. A daily close below this level could weaken the near-term bullish outlook and trigger a deeper correction towards the April 1 peak at 1.1627. On the upside, a breakout above the May 6 high of 1.1797 may pave the way for a move towards the April 17 high near 1.1850.