EUR/USD steadies after Trump’s Hormuz deadline extension, still capped below mid-1.1500s

EUR/USD posted tentative gains in European trading after Donald Trump extended a critical 72-hour deadline tied to maritime security in the Strait of Hormuz. The initial reaction looked constructive, with the pair rising to around 1.1523 (+0.3%) before slipping and consolidating near 1.1510, forming a “spike and fade” move that signals limited follow-through. Traders appear to be treating the development as temporary geopolitical relief rather than a resolution. The Strait of Hormuz moves roughly 20% of the world’s seaborne oil shipments, so any easing can briefly reduce risk premia and nudge short-covering. However, analysts warn disputes over naval patrols and insurance guarantees remain unresolved, keeping safe-haven demand for the US Dollar supported. Technically, EUR/USD remains range-bound. Resistance is around the 100-day SMA near 1.1545 and a larger ceiling near 1.1600. Support sits near the 50-day SMA around 1.1480, with a key floor around 1.1450. The article also cites a neutral RSI (~50) and options positioning that concentrates calls at 1.1550 and 1.1600, while puts cluster at 1.1450—consistent with continued sideways trading and failed breakout attempts. Fundamentally, the pair is capped by Eurozone-versus-US monetary divergence (ECB guidance for a June cut versus Fed patience) and mixed Eurozone growth (manufacturing contraction), alongside the USD’s structural role during Gulf stress. Net: EUR/USD is mildly supported by Hormuz headline relief, but the broader setup still favors a trading range unless geopolitics stabilizes and US growth data weakens enough to shift Fed expectations.