Euro Slides as EUR/USD Tests Key Technical Support

Risk Sentiment and Geopolitics Pressure the Euro
EUR/USD weakens to around 1.1465 during Monday’s early European session, as sellers retain control and the pair struggles to find traction. Downside forces remain dominant, with the Relative Strength Index (RSI) holding below the neutral 50 level, reinforcing the prevailing negative bias. The next notable support level is seen at 1.1450, while immediate resistance stands near 1.1570.

The decline in the Euro comes amid ongoing uncertainty over a potential US-Iran peace agreement. Concerns have intensified following threats from President Donald Trump to restart hostilities in the Middle East, dampening demand for risk-sensitive assets such as the Euro against the US Dollar.

In a joint statement on Monday, Qatar and Pakistan confirmed the conclusion of negotiations between the US and Iran in Bürgenstock, Switzerland, noting that the talks took place in a “positive, constructive atmosphere.” According to the statement, mediation efforts by Pakistan and Qatar resulted in substantial progress toward resolving the Lebanon conflict. The statement added that oil and petrochemical exports are exempt, the blockade is lifted, some frozen assets are released, and a large-scale reconstruction and development initiative for Iran is being launched.