Market sentiment turned positive when President Donald Trump announced that both Iran and Israel have agreed to a ceasefire.
Before that, Iran attacked a US military base in Qatar immediately after the country's announcement that it was closing its airspace.
Iranian media denied Trump's announcement and said that it had not received any proposal for a ceasefire.
However, there are reports that Iranian officials have agreed to a ceasefire. For now, there is still no official decision from both countries.
The US dollar experienced a significant decline in trading in the New York session yesterday, but investors are cautious in case of a change in the market situation.
Examining the EUR/USD currency pair chart, the price held above the 1.14500 zone before surging in the New York session to surpass 1.15000 and reach a high of 1.15800 at the end of the session.
Slow price movements continued in the Asian session this Tuesday morning, but prices still continued their upward trend.
The price increase is limited to the 1.16000 level which is seen testing the resistance zone as in the previous weeks of trading.
If the price manages to overcome this resistance, the latest 4-year high will be recorded with the target set to move to 1.17000.
However, if the market situation returns to risk again, the price will retreat back down from the 1.16000 zone.
The initial price decline is expected to approach the 1.15000 focus level again and then test the current price support around 1.14500.
