The Euro is slowly rising against the US Dollar, approaching 1.17 but pulling back from its earlier highs. Right now, the EUR/USD is around 1.1650, and risk reversals indicate a positive future for the Euro. Recently, the Euro got close to 1.17 but dipped a bit during European trading hours. It’s expected to remain stable with slight declines. Intraday trends and daily DMI show some support.

Euro’s Potential Rise

The Euro could rise above 1.17 and may test recent highs near 1.18 soon. In the meantime, gold has dropped slightly after hitting over $3,400 but is still well above $3,900. Bitcoin is stuck below the $116,000 resistance level, showing indecision. Economic forecasts predict slowing growth, even after the recent fluctuations caused by trade policies. The Bank of England lowered rates by 25 basis points, which has helped the Pound Sterling. Trading foreign exchange carries high risk, so individuals should carefully evaluate their financial goals and risks before investing. With the Euro steady at around 1.1650, this seems like a good time to accumulate before a potential increase. Recent economic data shows Eurozone inflation is stickier than that in the United States, which supports the Euro. We should think about strategies that take advantage of a gradual climb towards 1.18 in the upcoming weeks.

Gold and Bitcoin Strategy

Looking back, this situation resembles the breakout we experienced in the second half of 2020. The positive risk reversals in the options market suggest that buying September call options with a 1.18 strike price is a wise strategy. Selling out-of-the-money put options below 1.15 could generate income while staying bullish. Gold remains a key investment for us, staying strong above $3,900 despite a slight pullback. Global growth expectations are being lowered for the rest of 2025, which strengthens gold’s position as a safe-haven asset. New data from the second quarter confirms that central banks are still heavy buyers, adding a net 250 tonnes to global reserves. Due to the high price, holding long positions carries some risk, so we should use derivatives for better exposure management. A collar strategy—buying a protective put and selling an out-of-the-money call—can be beneficial. This approach protects our capital from sudden drops while allowing for modest gains. Bitcoin’s steady position below the $116,000 resistance suggests a significant price movement is coming. We are now well into the cycle after the 2024 halving, a period usually marked by strong upward trends. Implied volatility is decreasing, making long volatility strategies like strangles or straddles more affordable. We expect that this indecision might lead to a sharp movement around the major options expiry at the end of August. Thus, purchasing both a September call option above $118,000 and a put option below $112,000 is a smart way to navigate the upcoming volatility. This strategy allows us to profit, whether prices go up or down. The Bank of England’s unexpected rate cut has actually supported the Pound, seen as a proactive response to the falling UK inflation rates reported in July. This has temporarily boosted confidence in the UK’s economic management. We need to watch closely to see if further easing continues to be positively received by the market. Create your live VT Markets account and start trading now.

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