**Market Performance Overview** Cryptocurrencies experienced declines, with Bitcoin falling below $114,000. Ethereum and Ripple showed similar trends. The Eurozone economy is still strong, but there may be more interest rate cuts ahead. When trading foreign exchange, it’s important to be aware of risks like high leverage and the possibility of losing your entire investment. Investors should thoroughly assess their goals and risks, and seek independent advice if necessary. **US Dollar and Euro Dynamics** The EUR/USD has crossed the 1.1600 mark, mainly due to challenges the US dollar is facing, rather than just euro strength. This upward trend suggests that traders might want to consider buying call options. These options could yield profits if the euro strengthens against the dollar in the coming weeks. Our opinion is backed by recent economic data from late July 2025. The latest Non-Farm Payrolls report in the US showed job creation slowing to 155,000, which was below expectations. This indicates a slowing economy that may affect the Federal Reserve’s decisions. Meanwhile, inflation in the Eurozone remains steady at 2.4%, making it less likely for the European Central Bank to cut interest rates soon. In looking back, a similar situation occurred in the second half of 2020 when ongoing US dollar weakness pushed the EUR/USD from around 1.16 to over 1.21. This historical evidence suggests that if the pair breaks through the current 1.1650 resistance level, it could lead to a longer rally. Holding bullish positions through August seems like a smart strategy. It’s worth noting that the euro is gaining strength even as gold and cryptocurrencies are weaker. This shift indicates that the market’s movement focuses more on the US dollar’s poor performance than on overall risk appetite. Traders should be mindful of volatility, as this could result in erratic price movements. In the weeks ahead, a sensible approach is to use bull call spreads. This could involve buying a call option with a strike price near 1.1600 while selling another call closer to 1.1700. This strategy helps manage risk and can reduce entry costs while taking advantage of potential gains toward higher resistance levels. We will monitor the 1.1530 support level to reassess our bullish stance. Create your live VT Markets account and start trading now.

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