EUR/USD weekly: dollar gains erase euro recovery attempt, 2026-06-01

Where EUR/USD closed the week

EUR/USD opened Monday at 1.16481 and touched a weekly high of 1.16644 before sliding to close Friday at 1.16141. The pair shed 340 pips or 0.29% across the five trading days, with the bulk of losses concentrated in Wednesday's session where price dropped to the weekly low of 1.15941.

What moved price

Thursday's headline captures the week's story: "The USD has reversed most of the earlier declines vs the EUR, JPY and GBP." Dollar strength emerged as the dominant theme, particularly as Asian markets came under pressure. South Korea's KOSPI index plunged sharply while the won hit a 17-year low against the dollar, triggering safe-haven flows into USD.

China's central bank policy moves added to the dollar bid. When emerging market currencies weaken sharply, EUR/USD typically catches the spillover selling as traders reduce risk exposure across the board.

The week ahead

No high-impact events are scheduled for EUR/USD in the coming week according to the economic calendar. This leaves the pair vulnerable to continued position squaring and technical trading. Without fresh fundamental catalysts, any recovery attempts will likely meet resistance near this week's high at 1.16644. Conversely, a break below Wednesday's 1.15941 low would open the path toward 1.1550.

Positioning

LHFX client positioning shows 51.6% of traders are long EUR/USD versus 48.4% short as of Friday morning. This nearly balanced split reflects the market's indecision after the week's volatility. The slight long bias suggests retail traders view current levels as a buying opportunity, though the narrow margin indicates no strong conviction either way.

Levels to watch

The weekly low at 1.15941 stands as immediate support. If price closes below there, the psychological 1.1550 level comes into focus. On the upside, this week's high at 1.16644 marks first resistance, followed by the 1.1700 round number. Friday's tight 97-pip range suggests consolidation before the next directional move.

Byline: LHFX Research

Risk disclaimer. CFD trading involves substantial risk and is not suitable for every investor. Leverage works both ways and can amplify losses beyond your initial deposit. The analysis above is general market commentary and does not constitute investment advice or a recommendation to buy or sell any instrument. LHFX is regulated by the FSC Mauritius and the FSCA in South Africa.