USD Surges vs Major Pairs as EUR/USD, NZD/USD Fall on Risk-Off Sentiment

The US Dollar Index (DXY) strengthened 0.5% to 106.20 in Tuesday's session, pushing EUR/USD down 45 pips to 1.0515 and NZD/USD lower by 0.8% to 0.5890. The greenback's rally reflects heightened safe-haven demand amid growing global economic uncertainty and expectations of prolonged Fed hawkishness. USD/JPY bucked the trend, sliding 0.3% to 149.85 as both currencies attracted defensive flows. European currencies faced additional pressure from weak regional data, while commodity-linked currencies like NZD suffered from declining risk appetite. Technical indicators show EUR/USD approaching critical support at 1.0500, with a break potentially accelerating losses toward 1.0450. NZD/USD faces immediate support at 0.5875, while USD/JPY resistance emerges at 150.50. The dollar's broad strength suggests further gains possible if global growth concerns persist and Fed officials maintain their hawkish rhetoric.