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

WikiFX

| 2025-12-29 18:10

Abstract：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.

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.

USD

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Original 2025-12-25 21:00