The pair drops 0.3% to 1.1630, breaking below its 200-day moving average amid renewed US-Iran tensions and a muted Trump-Xi meeting.
EUR/USD fell 0.3% to 1.1630, its lowest level in five weeks, as the dollar gained ground ahead of European trading. The decline accelerated after breaking below the 200-day moving average, a key technical support level held since mid-April.
The euro had traded in a tight range between 1.1800 and the 200-day moving average, but geopolitical uncertainties, including the US-Iran conflict, weighed on sentiment. Markets largely dismissed the Trump-Xi meeting as a non-event for currency markets, shifting focus back to Middle East tensions.
The breach of technical support suggests potential for further downside, with traders monitoring developments in the US-Iran standoff for directional cues.