EUR/USD Under Pressure as Iran Geopolitical Fallout Weighs on Euro

EUR/USD is facing downward pressure as the geopolitical fallout from the Iran situation increasingly affects European markets and the single currency. The pair has come under selling pressure as traders reassess the euro's vulnerability to escalating Middle East tensions, which threaten European energy security and economic growth prospects. The US dollar is benefiting from safe-haven flows, with the Dollar Index (DXY) firming as risk aversion builds across global markets. Meanwhile, EUR/CHF is also under scrutiny, with the Swiss franc attracting defensive positioning. The divergence between Federal Reserve and European Central Bank policy expectations adds a further headwind for EUR/USD, as markets price in a relatively more hawkish Fed stance compared to the ECB's accommodative lean. Key support for EUR/USD lies near the recent swing lows, while resistance is capped by the pair's declining short-term moving averages. Traders should monitor developments in Iran-related diplomacy and any ECB commentary for shifts in sentiment. The combination of geopolitical risk and policy divergence creates a challenging environment for euro bulls in the near term.