The Euro has risen by 0.2% against the US Dollar as trading starts on Monday. This recent weakness in the Euro (EUR) is largely due to smaller differences in interest rates. The EUR has stabilized around its 200-day moving average, which is at 1.1590. Since August, it has been fluctuating between 1.15 and 1.19.

Meme Coins Trend Downwards

Meme coins like Dogecoin, Shiba Inu, and Pepe have dropped by about 3% on Monday. These coins are trading below important moving averages and are looking for immediate support. As the week begins, there are noticeable changes in the markets, affecting various commodities and currencies. Stocks have pulled back, gold has reached new highs, and the dollar has weakened outside of safe-haven currencies. The market seems anxious right now. Stock prices are down, and gold is hitting new highs. The CBOE Volatility Index (VIX), which measures market fear, has risen to 22.5, a sharp increase from last week’s lows. This indicates a strong demand for protecting portfolios, likely due to ongoing geopolitical tensions and renewed discussions about trade tariffs. Despite this volatility, the EUR/USD pair remains in a narrow range, finding strong support near its 200-day moving average at around 1.1590. This situation reflects the growing gap in policies between the US and Europe. The European Central Bank has indicated a more neutral approach after weaker economic data came out in late 2025. The most recent US inflation report, which came in slightly higher than expected at 3.3%, suggests that the Federal Reserve has limited options to ease policies.

Options Strategies for EUR/USD

In the upcoming weeks, selling options on the EUR/USD could be a smart choice, given its defined range between 1.1580 and 1.1680. An iron condor strategy, which involves selling a call spread above 1.17 and a put spread below 1.1550, could benefit from this forecasted stability. We saw similar sideways movement in prices during much of the third quarter of 2025 before volatility returned. Given the risk aversion seen in falling speculative assets like Dogecoin and Shiba Inu, it’s wise to consider buying downside protection for overall portfolios. Purchasing put options on major equity indices such as the S&P 500 can act as a safeguard against further market declines. This is a sensible strategy until the reasons behind the market’s unease become clearer. Create your live VT Markets account and start trading now.

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