The EUR/USD currency pair traded subduedly around 1.1520 during the European session on Friday, facing slight selling pressure as the US Dollar (USD) remained firm amid hopes for de-escalation in the Middle East war involving the United States, Israel, and Iran [1]. The US Dollar Index (DXY), which tracks the Greenback against six major currencies, was up 0.1% near 100.00 at press time [1].
Investor sentiment was mixed due to conflicting statements from peace mediators regarding US President Donald Trump's claim that he ordered a pause on planned military strikes on Iran's power plants at Tehran's request. The Wall Street Journal reported that peace talks mediators dismissed claims that Iran had requested a 10-day pause on strikes on its energy plants [1].
On the Euro front, the currency is expected to remain under pressure due to fears of persistent energy supply disruption following damage to Gulf energy infrastructure amid the ongoing conflict. European Central Bank (ECB) President Christine Lagarde stated in an interview with the Economist that the negative energy shock to the world economy from the Middle East war would be larger than current projections, as significant energy infrastructure has been damaged [1].
Technically, EUR/USD trades lower at around 1.1520, just above the 200-day EMA near 1.1540, and continues to form lower highs below the 20-day EMA at 1.1590, maintaining a modestly bearish bias within a broader sideways context. The 14-day Relative Strength Index (RSI) struggles to recover into the 40.00-60.00 zone, indicating heavy selling pressure at higher levels. Immediate resistance is at the 20-day EMA (1.1590), with a daily close above this level needed to ease bearish pressure and target 1.1690. On the downside, initial support is at 1.1500, with a decisive break below 1.1415 confirming a continuation of the downswing and exposing the next support zone near 1.1350 [1].
CONCLUSION
EUR/USD remains under pressure as geopolitical tensions and energy supply concerns weigh on the Euro, while the US Dollar benefits from firm sentiment. Technical indicators suggest a bearish bias, with key support and resistance levels in focus. Market participants are closely monitoring developments in the Middle East and energy infrastructure for further direction.