EUR/USD Slides to 6-Week Low as Rising Tensions Fuel Dollar Demand

EUR/USD has declined to its lowest level in six weeks as escalating market tensions and a broadly stronger US dollar weigh heavily on the pair. The euro is under sustained selling pressure amid a combination of geopolitical uncertainty and diverging monetary policy expectations between the European Central Bank and the Federal Reserve. Rising crude oil prices, with Brent futures climbing on supply disruption fears, are adding to inflationary concerns that complicate the ECB's policy outlook while simultaneously boosting the dollar through risk-aversion flows. The widening US-Eurozone yield differential continues to attract capital toward dollar-denominated assets, further pressuring EUR/USD. From a technical perspective, the pair has breached key support levels, with the next significant downside target near the 1.0700 area, while resistance has formed around the 1.0780 zone. Traders should watch for upcoming Eurozone PMI data and any shifts in ECB rhetoric for potential catalysts. A sustained break below current levels could open the door to a deeper correction toward 1.0650.