The euro has struggled against the dollar since the start of the Iran war, but it’s recently showing signs of securing ​a firmer footing.

Technical analysis suggests buyers are willing to step in ‌before the single currency falls too far.

That’s based on the euro’s ability to keep rising back above an important moving average — a tool used to smooth out ​price changes to help discern a trend.

In this case, it’s the ​200-day moving average, which is among the most watched long-term trend ⁠indicators in technical analysis.

It can become a self-fulfilling signal because so ​many traders and institutions watch this level.

It tends to act as support, ​where buyers step in during a rising trend, and resistance — where sellers often prevail — in a falling market.

The 200-day moving average currently is at $1.1677, and as long as the ​euro stays above there, many traders are likely to think that it ​can rise back to 1.1830, which was its highest level in the month of July ‌2025. ⁠

Past highs and lows are often important price levels for the market.

A close above $1.1830 would strengthen the euro’s outlook, allowing traders to focus on the September monthly peak of $1.1919, while a drop below the 200-day moving average ​would support more bearish ​views.

What the data ⁠shows? That the 200-day moving average has become support for the euro, where buyers appear to be stepping in.

In addition, holding above the ​200-day moving average makes traders more confident of further ​rises, potentially ⁠to the July 2025 high of $1.1830 and September 2025 peak of $1.1919.

A drop below the 200-day moving average would indicate further losses for the euro are becoming ⁠more ​likely.