EUR/USD Holds 1.0820 Despite Geopolitical Turmoil, Eyes ECB Meeting

EUR/USD maintained stability at 1.0820, showing resilience amid broader market volatility triggered by Middle East tensions. The pair traded in a tight 25-pip range as traders balanced dollar weakness from geopolitical risks against euro caution ahead of next week's ECB policy meeting. European diplomats' scheduled talks with Iran on Friday provided minor euro support, suggesting potential de-escalation efforts. Technical analysis reveals the pair consolidating between 1.0800 support and 1.0850 resistance, with the 50-day moving average at 1.0835 acting as a pivot point. Eurozone economic data remains mixed, with services PMI at 53.2 indicating expansion while manufacturing struggles at 45.1. The relative calm in EUR/USD contrasts with volatility in commodity and haven currencies, suggesting the pair may serve as a stability anchor during current uncertainties. Traders await tomorrow's Eurozone inflation preliminary data, which could influence ECB rate expectations and provide directional clarity for the pair.