EUR/USD eyes support as FTSE 100 signals risk-off mood

EUR/USD faces renewed selling pressure as deteriorating risk sentiment, evidenced by FTSE 100 weakness, supports safe-haven dollar demand. The pair has declined 0.2% in early European trading, testing key technical levels as equity market concerns mount. The FTSE 100's pullback from recent highs reflects growing investor caution, benefiting the US dollar at the expense of risk-sensitive currencies. EUR/USD technical analysis shows immediate support at 1.0520, with the 50-day moving average providing additional backing. Resistance sits at 1.0580, which capped recent recovery attempts. The US Dollar Index has strengthened 0.3%, approaching the 107.00 psychological level. Traders are positioning defensively ahead of this week's European economic data releases and ongoing concerns about growth momentum. A break below 1.0520 could accelerate EUR/USD losses toward 1.0480, while improved risk appetite might allow a recovery toward 1.0580 resistance.