USD Rally Continues: EUR/USD, USD/JPY, USD/CHF, USD/CAD Analysis

The US Dollar Index has extended its rally to a 2-month high, pressuring major currency pairs across the board. EUR/USD has declined 0.4% to test support near 1.0950, while USD/JPY surged 0.6% to 149.50, approaching the psychological 150.00 level. USD/CHF advanced 0.3% to 0.8650, and USD/CAD broke above 1.4000 for the first time in six months, gaining 0.5% to 1.4025. The dollar strength stems from growing expectations that the Federal Reserve will maintain higher rates for longer, supported by resilient US economic data. Technical indicators suggest the rally has room to run, though momentum may slow near current resistance levels. Traders should watch for potential profit-taking as pairs approach key psychological levels, particularly USD/JPY at 150.00 and USD/CAD at 1.4050.