FX Markets: Dollar Holds Firm at 98.00; Euro and Kiwi Breach Key Technical Levels

The US Dollar Index (DXY) remains steady near 98.00, supported by a mix of technical recovery and external currency weakness. While markets await definitive signals on the Fed's 2026 cutting cycle, technical breakdowns in major peers are driving price action.

EUR/USD: Channel Breakdown

The Euro continues to struggle, trading around 1.1760 and marking its fourth consecutive session of losses.

• Technical View: The pair is testing the lower boundary of its ascending channel. A sustained break below the 9-day EMA (1.1750) would invalidate the short-term bullish bias, opening the door for a deeper correction toward 1.1680.

• Fundamental Driver: Divergence in growth outlooks between the US and the Eurozone remains the primary weight on the single currency.

NZD/USD: Bearish Continuation

The New Zealand Dollar remains subdued below 0.5850, trading near 0.5830. The Kiwi is failing to capitalize on any risk-on sentiment, weighed down by localized economic softness and a broad US Dollar recovery. Immediate support lies at the 0.5800 handle; a failure to hold this level could accelerate selling pressure from algorithmic trend-followers.