• Continuing Iran war drags EUR/USD down after peace hopes sparked rise

• EUR/USD drops from 1.1849 Friday to 1.1729 on Monday

• Overbought situation (pair rose to 1.1850 top 20-day Bollingers) unwound

• Traders have flipped back to betting on the euro rising

• Close in relation to daily cloud top at 1.1750 may determine next move

• Pair has rebounded to the cloud top following drop to Monday's low

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EURUSD


(Jeremy Boulton is a Reuters market analyst. The views expressed are his own)