The EUR/USD currency pair recovered most of its opening losses but remained 0.2% lower, trading near 1.1700 during the late European trading session on Monday [1]. The decline was attributed to renewed geopolitical tensions, specifically the failure of the first round of US-Iran talks after Tehran refused to abandon its nuclear ambitions. In response, US President Donald Trump announced a blockade of Iranian ports, set to begin on April 13 at 10:00 AM ET, 14:00 GMT [1].
This escalation in Middle East conflicts has prompted a risk-off mood in global markets, boosting demand for safe-haven assets such as the US Dollar. The US Dollar Index (DXY), which measures the Greenback against six major currencies, rose 0.2% to around 99.00 as of writing [1]. The S&P 500 is expected to open lower, reflecting overnight weakness in futures and diminished investor risk appetite [1].
From a technical perspective, EUR/USD holds a constructive bullish bias, trading above the 20-day exponential moving average (EMA) at 1.1611 and the 38.2% Fibonacci retracement at 1.1671, which serve as nearby support levels. The Relative Strength Index (14) stands at 57.6, comfortably above the neutral 50 line, indicating that upside momentum is building but not yet overbought [1]. Resistance is noted at the 50.0% Fibonacci retracement at 1.1750 and the 61.8% level at 1.1830, while further support lies at the 23.6% retracement at 1.1572 and the structural floor around 1.1413 [1].
No forward-looking statements or analyst opinions beyond technical analysis were provided in the article [1].
CONCLUSION
Geopolitical tensions and the US blockade of Iranian ports have pressured EUR/USD lower, with the US Dollar benefiting from increased safe-haven demand. Technical indicators suggest some upside momentum, but the pair remains vulnerable to further declines if risk-off sentiment persists. Market participants are closely watching developments in the Middle East for further direction.