Dollar Breaks Out as EUR/USD Hits Oversold Levels

The US dollar has set a fresh yearly high as it extends its winning streak to three weeks. This week saw the dollar burst through several resistance levels, including the key Fibonacci level of 101.80 that had previously held highs in June this year.

Interestingly, while USD/JPY was once a major source of USD strength, last week's moves came from a dramatic fall in EUR/USD, pushing the pair to its most oversold state in over a decade.

The weekly chart shows the dollar breaking out and testing levels that haven't been seen since April 2025. This move is significant as it indicates a range break and opens the door for trends, especially considering recent rate changes and expectations around the FOMC.