Tag Archive for: EURUSD

The dollar index has recently seen a sharp decline, losing more than 10% from the January 2025 highs, which is a significant move in a relatively short period. Looking at the current price action, it’s important to consider sentiment; when it reaches an extreme, a shift is often near. The chart below shows the current drop is coming from the same black resistance line that triggered a reversal at the end of 2024. Back then, sentiment was heavily bearish—especially on EURUSD—and a reversal followed. It now appears sentiment may again be reaching a similar extreme.