EUR/USD falls as Middle East tensions boost safe-haven demand

EUR/USD declined 0.5% to 1.0735 as escalating Middle East geopolitical tensions triggered risk-off flows, benefiting the US dollar's safe-haven status. The CAC 40's sharp decline reflects broader European market concerns about regional instability's potential economic impact. Flight-to-quality moves accelerated during European trading hours, with investors abandoning risk assets for USD liquidity. The euro faces additional pressure from uncertainty over ECB's policy stance amid slowing growth concerns. Technical analysis shows the pair breaking below the 1.0750 support level, opening potential for further declines toward 1.0700. Immediate resistance now sits at 1.0780, coinciding with the 50-day moving average. Traders should monitor developments in the Middle East closely, as any de-escalation could trigger sharp reversals in safe-haven positioning.