EUR/USD Weakens to 1.1500 Amid Escalating Tensions in Middle East
The EUR/USD pair weakened to near 1.1500 in Friday's early European session, maintaining a bearish trend under the 100-day Simple Moving Average (SMA). The escalation of tensions in the Middle East weighed on riskier assets, with Iranian Parliament Speaker Mohammad Bagher Ghalibaf warning that the United States will pay the price for killing Iranian civilians.
The recent improvement in Eurozone data has strengthened expectations for a second interest rate hike this year, potentially as soon as September. Brown Brothers Harriman's Elias Haddad noted that the recovery in Eurozone economic activity and above-target inflation reinforces the case for the ECB to resume raising rates.
In technical analysis, EUR/USD remains capped under the 100-day SMA, with spot holding below the upper Bollinger Band. The Relative Strength Index (RSI) at about 59 hints at improving momentum within a constrained backdrop. On the topside, immediate resistance is aligned at the upper Bollinger Band around 1.1510.