• EUR/USD finds support from a lack of escalation in the Israel-Iran conflict. 
• Diverging interest rate expectations are an overall bearish factor however. 
• EUR/USD may be forming a Bear Flag price pattern. 

EUR/USD continues to trade within a contained box-like range, up a marginal tenth of a percentage point in the 1.0660s on Monday. 

A lack of escalation in the Israel-Iran conflict has led to an unwinding in geopolitical risk, which has reduced demand for the safe-haven US Dollar and provided EUR/USD with a slight lift. 

Most analysts are bearish EUR/USD, however, because of a diverging outlook for future path of interest rates – a key FX driver – in the US as compared to Europe.