EUR/USD is trading in a tight range during Friday’s Asian session, hovering above the mid-1.1300s level after failing to build on Thursday’s modest gains. The pair is holding above its lowest point since May 2025, which was reached just yesterday, suggesting potential resistance to further downside moves despite the prevailing bearish technical setup.
The currency pair’s inability to break decisively lower comes as geopolitical tensions surrounding the Strait of Hormuz inject uncertainty into global markets. Traders are showing hesitation to aggressively push the euro lower against the dollar, even as technical indicators point to continued weakness. The mixed signals have created a cautious environment for forex participants, with the pair stuck in consolidation mode.
Market participants including forex traders, institutional brokers, and trading desks should monitor key support levels closely as the session progresses. Any escalation in Middle East tensions could trigger volatility across currency markets.
FXnCO Insight
Bearish traders should exercise caution at current levels, as geopolitical risk premiums and Thursday’s support level may limit immediate downside before a clearer directional break emerges.
Source: FXStreet