EUR at Risk of Sliding Back to 1.1400 Amid Rising Geopolitical Tensions

EUR at Risk of Retesting 1.1400 as Safe-Haven Demand Dominates

The Euro (EUR) started the week under significant pressure, with losses mounting against the US Dollar (USD). The pair shows growing vulnerability as traders price in geopolitical instability following weekend US-Iran tensions, raising the prospect of a move back toward the 1.1400 support zone.

Early G10 Market Reaction Flags EUR and SEK Weakness

While JPY and AUD/NZD are currently showing stress, it was the Euro (EUR) and Swedish Krona (SEK) that were first to drop sharply when markets reopened. This early weakness could be a signal that EUR and SEK are the most exposed G10 currencies to risk-off flows and potential regional conflict escalation.

Geopolitical Uncertainty Keeps Risk Appetite Low

Traders remain cautious amid intensifying Middle Eastern tensions after the US strikes on Iranian nuclear sites. The lack of clear retaliation from Iran leaves the door open to further developments, maintaining a risk-averse environment that supports the US Dollar and weighs on cyclical currencies like the EUR.

📉 The Euro may remain under pressure if global risk sentiment deteriorates further, especially if safe-haven flows intensify.

Technical Outlook: EUR/USD Faces 1.1400 Retest

The EUR/USD pair is showing signs of weakness on the charts, with immediate resistance seen near 1.1500, while key support lies at the 1.1400 psychological level. A clean break below could pave the way toward 1.1350–1.1300.

Internal Linking Suggestions (for Tredu.com):

• EUR/USD Daily Analysis: Key Levels to Watch This Week
• What Drives the Euro? Economic and Political Factors
• Risk Aversion Explained: How Geopolitics Impacts Forex
• Geopolitical Events: Market Reaction Strategies