EUR/USD consolidates near 1.15 amid US involvement in Israel-Iran tensions

EUR/USD traded in a tight range around 1.1500, showing limited directional bias as markets digest increasing US involvement in the Israel-Iran conflict. The pair has experienced significant volatility since mid-May, rallying from 1.1140 to peak at 1.1610 before retracing to current levels. Dollar flows remain mixed as geopolitical tensions support safe-haven demand while concerns about potential US military spending and its fiscal implications weigh on the greenback. Technical analysis reveals the pair is trapped between resistance at 1.1550 (50-day moving average) and support at 1.1470 (previous week's low). Market participants await clearer signals from upcoming US economic data and any developments in Middle East tensions. The neutral price action suggests traders are positioning cautiously, with implied volatility rising 15% week-over-week, indicating expectations for larger moves ahead as the geopolitical situation evolves.