EUR/USD rebounds to 1.1530 as Middle East tensions ease

EUR/USD has recovered 0.5% to 1.1530, erasing most of the week's losses as safe-haven dollar demand wanes amid de-escalation hopes in the Middle East conflict. The pair traced an inverted head-and-shoulders pattern on the hourly chart, targeting a retest of recent highs near 1.1615. The dollar index declined 0.16% as Reuters reported Iran's willingness to discuss uranium enrichment limitations, reducing geopolitical risk premiums. Technical indicators show the pair successfully broke above both the 100-hour and 200-hour moving averages during Asian trading, with buyers defending the 1.1445 support level. Immediate resistance lies within the 1.1524-1.1530 swing area. A sustained break above 1.1530 could accelerate gains toward the 1.1615 target, while failure to hold above the 200-hour MA might renew selling pressure. Traders await further developments in diplomatic talks for directional clarity.