USD Faces Pressure as Europe Strengthens and Resistance Holds Firm

The US dollar enters a pivotal week facing multiple headwinds as European currencies gain strength and key technical resistance levels cap upside momentum. EUR/USD and USD/CHF price action suggests shifting dynamics, with the dollar struggling to maintain recent gains against major European counterparts. The dollar index has encountered firm resistance at recent highs, failing to break through despite multiple attempts. European economic resilience and reduced energy concerns have bolstered both the euro and Swiss franc. Technical analysis reveals the dollar is testing critical support levels across multiple pairs, with EUR/CHF also showing interesting cross-rate dynamics. Market sentiment has turned cautiously bearish on the dollar as traders reassess relative economic strength between regions. The week ahead features crucial economic releases that could either reinforce dollar weakness or provide the catalyst for a breakout above resistance.