EURUSD strengthens on eased geopolitical tensions and increased risk appetite

The EURUSD pair formed a strong bullish candle on Wednesday’s daily chart, breaking through local resistance levels and settling comfortably at 1.17079. This is a clear sign of a major shift in market sentiment.

The two-week truce between the United States and Iran, announced on April 7–8, played an integral part in EURUSD’s rally. American Treasury yields declined on the news, while the Dollar Index (DXY) dipped to monthly lows. As a result, the pair received a much-needed boost, despite sluggish PMI readings from the eurozone. So, global risk appetite has temporarily put the region’s macroeconomic struggles under its thumb, which is beneficial for EURUSD.

From a technical perspective, powerful bullish momentum is confirmed by exceptionally high trading volumes. Morning figures have already approached the previous day's levels, indicating genuine interest from major players and the absence of speculative noise.

The Chaikin Oscillator remains in positive territory and looks poised to climb higher, hinting at active accumulation by institutional investors. A previous crossover of the zero line from bottom to top confirmed a shift to a bullish trend, and the current rise points to growing buying pressure. A synchronized increase in the indicator, volume, and price is concrete evidence that the rally has legs. In other words, this momentum has a solid foundation—fueled by capital rotating out of safe havens and into riskier assets like the euro.

The Stochastic Oscillator (%K=37, %D=43) is in the neutral zone, sitting below the 50 threshold but above oversold levels. There is a small divergence between price peaks and the indicator, though nothing critical. If the pair continues to climb, Stochastic lines are likely to move closer and form a bullish crossover in the middle of the channel—another sign that the rally could continue.

Consider the following trading strategy:

Buy EURUSD on a pullback following the recent sharp rally near the 1.16600 level. Place Take profit at 1.18250 and Stop loss at 1.15380.

The forecast remains relevant between April 8 and April 15, 2026.