Forex Markets Eye Rangebound Session Amid US-Iran Geopolitical Risks

Major forex pairs are expected to trade in tight ranges during Tuesday's European session, with no significant economic data releases scheduled on the calendar. Price action across key pairs including EUR/USD, GBP/USD, and USD/JPY is likely to remain subdued as traders await fresh catalysts. The primary wildcard for the session is the evolving US-Iran geopolitical situation, which could inject sudden volatility into safe-haven flows if tensions escalate. In such a scenario, the Japanese yen and Swiss franc would likely benefit from risk-off positioning, while commodity-linked currencies such as AUD and CAD could face selling pressure. Oil-sensitive pairs may also see heightened activity given Iran's role as a major crude producer, with any supply disruption narrative potentially strengthening the Canadian dollar via higher oil prices. Traders should monitor headlines closely and consider reducing position sizes given the binary risk profile. Key support and resistance levels on major pairs remain intact from the prior session, with no technical breakouts anticipated absent a geopolitical trigger.