USD Maintains Strength but JOLTS Data May Trigger Reversal

The US dollar index continues to hold elevated levels, with EUR/USD trading near recent lows while EUR/PLN shows relative stability. Current dollar strength reflects market positioning ahead of crucial JOLTS job openings data, which could significantly impact Fed policy expectations. If JOLTS data shows softening labor market conditions, the dollar's risk premium may fade rapidly, potentially triggering a reversal in major pairs. EUR/USD faces immediate resistance at 1.0850, with support holding at 1.0800. The dollar index futures indicate consolidation near 105.50, suggesting traders await fresh catalysts. A weaker-than-expected JOLTS reading could push EUR/USD toward 1.0900, while strong data might extend dollar gains. Market positioning remains tilted toward dollar longs, creating potential for a sharp squeeze if employment indicators disappoint expectations.