{"id":44353,"date":"2026-04-13T17:36:14","date_gmt":"2026-04-13T17:36:14","guid":{"rendered":"https:\/\/www.vtmarkets.com\/en\/uncategorized\/eur-usd-pares-early-losses-but-stays-near-1-1700-as-geopolitical-tensions-sustain-risk-off-sentiment\/"},"modified":"2026-04-13T17:36:14","modified_gmt":"2026-04-13T17:36:14","slug":"eur-usd-pares-early-losses-but-stays-near-1-1700-as-geopolitical-tensions-sustain-risk-off-sentiment","status":"publish","type":"post","link":"https:\/\/www.vtmarkets.com\/en-latam\/live-updates\/eur-usd-pares-early-losses-but-stays-near-1-1700-as-geopolitical-tensions-sustain-risk-off-sentiment\/","title":{"rendered":"EUR\/USD pares early losses but stays near 1.1700 as geopolitical tensions sustain risk-off sentiment"},"content":{"rendered":"EUR\/USD moved back towards 1.1700 in late European trade on Monday, but remained down 0.2% on the day. The rebound stalled near the 50.0% Fibonacci retracement at 1.1750.\n\nRisk appetite weakened after the first round of US-Iran talks failed, following Tehran\u2019s refusal to give up its nuclear ambitions. US President Donald Trump said the US will blockade Iranian ports from April 13 at 10:00 AM ET (14:00 GMT).\n\n<h3>Dollar Demand Strengthens<\/h3>\nUS stock futures pointed to a lower open for the S&#038;P 500. Demand for the US Dollar rose, with the US Dollar Index (DXY) up 0.2% to around 99.00.\n\nTechnically, EUR\/USD stayed above the 20-day EMA at 1.1611 and the 38.2% retracement at 1.1671. The 14-period RSI was 57.6, above 50 and below overbought levels.\n\nResistance sits at 1.1750, then 1.1830 at the 61.8% retracement. Support is at 1.1671, then 1.1611, with further levels at 1.1572 and 1.1413.\n\nThe current market mood is becoming more cautious, reminding us of past risk-off events like the US-Iran tensions during the Trump administration. We saw then how geopolitical stress directly led to a stronger US dollar as investors sought safety. This historical pattern from before 2025 provides a useful template for what we can expect in the coming weeks of April 2026.\n\n<h3>Options Strategies In A Risk Off Tape<\/h3>\nToday, with new friction reported in the South China Sea, we are observing a similar flight to the dollar. The CBOE Volatility Index (VIX), a key measure of market fear, has surged to 23.5 this week, well above the first quarter&#8217;s average of 17. This move is compounded by last week&#8217;s US inflation data, which showed core CPI remaining stubborn at 3.2%, giving the Federal Reserve little reason to soften its stance.\n\nFor derivative traders, this points toward strategies that benefit from a declining EUR\/USD and heightened market volatility. We saw a comparable situation in 2025 when supply chain disruptions in Europe caused a sharp, though temporary, spike in the dollar&#8217;s value. Buying put options on the EUR\/USD, or using bear put spreads to offset the higher premiums from increased volatility, could be a prudent approach to target a move lower.\n\nImplied volatility in EUR\/USD options has risen, making short-dated contracts for late April and May particularly responsive to price swings. The pair is currently struggling to hold above the 1.0680 level, a key technical support zone from earlier this year. A firm break below this could create a path towards the 1.0550 mark, a level not seen since the fourth quarter of last year.\n\n<b><a href=\"https:\/\/www.vtmarkets.com\/trade-now\/\">Create your live VT Markets account<\/a>\u00a0and\u00a0<a href=\"https:\/\/myaccount.vtmarkets.com\/login\">start trading<\/a>\u00a0now. <\/b>\n<p>\n\n<p><strong>Start trading now &#8211; Click <a href=\"https:\/\/latam.vtmarkets.com\/en\/trade-now\/\">here<\/a> to create your real VT Markets account <\/strong> <\/p>\n<!-- \/wp:post-content -->","protected":false},"excerpt":{"rendered":"<p>EUR\/USD rebounds toward 1.1700 but stays lower as Iran tensions boost dollar; key support\/resistance noted.<\/p>\n","protected":false},"author":87,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[41],"tags":[],"class_list":["post-44353","post","type-post","status-publish","format-standard","hentry","category-live-updates"],"acf":{"acf_article_selection_author":null},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.vtmarkets.com\/en-latam\/wp-json\/wp\/v2\/posts\/44353","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarkets.com\/en-latam\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarkets.com\/en-latam\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-latam\/wp-json\/wp\/v2\/users\/87"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-latam\/wp-json\/wp\/v2\/comments?post=44353"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-latam\/wp-json\/wp\/v2\/posts\/44353\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-latam\/wp-json\/wp\/v2\/media?parent=44353"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-latam\/wp-json\/wp\/v2\/categories?post=44353"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-latam\/wp-json\/wp\/v2\/tags?post=44353"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}