EUR/USD Forecast: Euro needs to reclaim 1.0900 to turn bullish

• EUR/USD trades in a narrow channel below 1.0900 to start the week.
• The pair could struggle to gather bullish momentum unless risk mood improves.
• ECB President Lagarde will be delivering a speech later in the day.

EUR/USD started the new week under modest bearish pressure and was last seen moving up and down in a narrow band below 1.0900. 

Escalating geopolitical tensions cause investors to move away from risk-sensitive assets and help the US Dollar (USD) turn resilient against its rivals early Monday. Growing fears over the Israel-Hamas conflict spreading in the Middle East following Yemen’s Houthi rebels’ attack on two Israeli ships in the Red Sea force markets to stay cautious.