Dollar Surge Puts Pressure on Euro, Nasdaq Faces Reversal Risks

The dollar's rebound is putting pressure on major currency pairs, including the euro, which is trading near its yearly lows. This combination of a strong US dollar and falling crude oil prices has created a mixed cross-asset signal that is affecting both currency markets and equity indices.

According to momentum indicators, both hourly and daily time frames are stretched, indicating potential short-term reversal risks. The EUR/USD price outlook suggests that if the euro breaks below 1.1400, it could expose the yearly low near 1.1320, while a sustained breakdown below this level would open the way toward the multi-year downtrend support extending from July 2025.

The Nasdaq price outlook is also showing stretched overbought momentum on both daily and hourly time frames, increasing the risk of a short-term pullback. A close above the record high near 30,750 would extend the bullish move toward 31,200, but this area could attract profit-taking given the overbought conditions.