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EUR/USD slips as risk-off sentiment lifts the dollar

The US Dollar Index is up 0.2% near 101.15, and EUR/USD trades below its 20-day EMA at 1.1443.

Reported · Written up by our desk · Major Pairs

EUR/USD is trading lower around 1.1390 in mid-Asian trade on Monday, as the US dollar draws support from a more risk-off tone, according to FXStreet. The outlet links the dollar bid to heightened US-Iran military tensions, including concerns around the Strait of Hormuz, which it notes supplies nearly 20% of global energy.

FXStreet also points to a shift in investor positioning that has “de-anchored” inflation expectations, adding that market participants are looking ahead to US CPI data for June, due Tuesday. The week also includes Federal Reserve Chair Kevin Warsh’s two-day congressional testimony starting Tuesday, which could influence expectations for US inflation and rates.

On the pair’s technical outlook, FXStreet says EUR/USD’s bearish near-term bias remains intact with the spot price holding beneath the 20-period exponential moving average near 1.1443. The analysis cites a breakdown of a bearish flag formation and an RSI(14) around 38, suggesting persistent downside pressure that is not yet extreme.

For key levels, FXStreet highlights support at the June 24 low near 1.1324, followed by 1.1300. On the upside, it flags resistance near the lower boundary of a parallel channel around 1.1424, then the 20-period EMA at 1.1443, with a higher channel cap around 1.1530.

Latest closeEUR/USD 1.142 ▼0.0%

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