USD Weakness Persists: Dollar Index Shows Continued Softness

The US Dollar Index maintains its soft trend, with broad-based weakness continuing across major currency pairs. EUR/USD is benefiting from the dollar's decline, as traders reassess Federal Reserve rate expectations amid mixed economic signals. The DXY's inability to sustain recent gains reflects shifting market sentiment and questions about US economic resilience. Technical analysis shows the dollar index struggling below key resistance levels, suggesting the path of least resistance remains lower. Currency traders are positioning for potential further dollar weakness, with safe-haven demand diminishing as risk appetite improves. The persistent softness contradicts earlier expectations of dollar strength, forcing market participants to recalibrate positions. Support levels on the Dollar Index are being tested, and a break below could accelerate selling pressure. This environment favors dollar shorts across major pairs, particularly against currencies with supportive fundamentals or technical setups.