EUR/USD Under Pressure as Dollar Index Extends Post-Jobs Rally
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The dollar's post-jobs rally isn't isolated to EUR/USD—it's part of a broader repricing across major pairs, reflecting shifting rate expectations rather than eurozone-specific weakness. This distinction matters for traders positioning around near-term support and resistance zones.
With risk sentiment souring as equities retreat on hike fears, EUR/USD faces a dual headwind: a firmer dollar and reduced risk appetite, both of which typically pressure the pair lower in the short term.
A reversal in equity sentiment or a softer-than-expected inflation print could quickly shift momentum, making the pair sensitive to incoming US data releases in the days ahead.