EUR/USD Slides to 1.0945 as Dollar Hits 2-Month Peak

EUR/USD has declined sharply to 1.0945, down 0.5% as the US Dollar Index reached its highest level in two months at 106.25. The euro's weakness reflects growing concerns about eurozone economic momentum, with recent PMI data suggesting manufacturing contraction continues. Meanwhile, US economic resilience and hawkish Fed communications have bolstered dollar demand. Technical analysis shows EUR/USD has broken below the 1.0950 support level, opening the path toward 1.0920, the September low. The pair's 20-day moving average at 1.0980 now acts as resistance. USD/JPY has simultaneously advanced to 149.60, reinforcing the broad-based dollar strength theme. Traders are increasingly bearish on EUR/USD, with positioning data showing net shorts at their highest level since July. The upcoming ECB meeting next week could provide catalyst for either further declines or a potential bounce.