US Dollar Hits New Highs as EUR/USD RSI Falls to Oversold Levels

The US dollar is reaching new heights in 2026, causing pressure on the euro and pound. The EUR/USD daily RSI has fallen to oversold levels last seen in 2020, indicating a potential reversal risk.

This move is supported by rising US Treasury yields, which have reached levels last seen in 2002, and resilient US GDP growth revised to 2.2%. However, momentum indicators across yields and currencies are beginning to show signs of exhaustion, raising the risk of a near-term pullback.

The DXY's new 2026 high near 102 is facing resistance aligned with the 38.2% Fibonacci retracement of the 2025-2026 downtrend and the previous peak recorded in May 2025. A bearish RSI divergence between 2022 and 2026 suggests that a pullback in yields and dollar pairs may be approaching.

A confirmed reversal would likely involve price falling back below the 2026 uptrend line connecting the sequence of higher lows, as well as below the 100.50-100.30 support barrier. The key invalidation level for the bullish setup is the psychological 100 mark, which aligns with the mid-zone of the 2022-2026 channel.