EUR/USD Eyes $1.10 as Iran Conflict and Extreme Positioning Fuel Euro Rally

EUR/USD is pushing toward the key $1.10 psychological level as escalating Middle East conflict involving Iran and extreme speculative positioning combine to drive euro appreciation against the greenback. The intensifying geopolitical crisis has triggered broad-based US dollar selling as traders unwind long-dollar positions built during calmer market conditions. Positioning data shows speculative long euro bets reaching extreme levels, yet momentum continues to favor further upside as safe-haven flows diversify away from the dollar toward gold and the euro. The Iran conflict has added a significant risk premium to energy markets, indirectly pressuring the US dollar through inflation expectations and potential economic slowdown concerns. Gold prices have surged in tandem, reinforcing the risk-off narrative. Key resistance for EUR/USD sits at the 1.1000 round number, with a clean break potentially opening the path toward 1.1050. Support is established near 1.0920-1.0950. Traders should monitor positioning extremes carefully, as crowded trades increase the risk of sharp reversals on any de-escalation headlines.