U.S Dollar Gains Against Other Majors.

On the 24th of December EUR/USD failed to break through a major resistance level. Following this, on the 6th of January it broke market structure officially marking the price action as bearish.

Since then, the U.S Dollar has not slowed down and it gained every day for the last week against EUR/USD. We are rapidly approaching another support level as well, and if it gets broken, I dont believe the pair will see another bull market for a while.

This is also supported by weekly time frame price action, which is showing signs of being long overdue for a retracement, and that retracement could potentially last tens of weeks. We have CPI coming this week on the 13th. CPI could potentially kickstart the bear market, making it happen faster than anticipated. It could also flip around and do the opposite of what we expected and continue on with the bull market, but this, of course, is very unlikely to happen as market sentiment is also bearish, meaning most people dont see this pair going much higher.

Moving on to another major pair, the U.S. dollar is set to gain against the Swiss Francs as well, which is quite unexpected. The situation is relatively the same as the situation with EUR/USD. We are long overdue for a retracement on this pair; the dollar has just been steadily falling against the Swiss Francs since the start of 2025.

Around the middle of 2025, the pair started slowing down, and just like EUR/USD, it consolidated for the second half of the year. Also, extremely similarly, it bottomed out on the 24th of December, where it started gaining. On the 8th of January, it finally broke a really important level, and its officially marked as bullish.

The Swiss Francs don‘t have any significant news events coming up this week, so we’ll wait for CPI again on the 13th.

To finish this off, let‘s talk a bit about USD/JPY, a pair I don’t mention very frequently, but it‘s worth mentioning this time around. The dollar has been gaining strongly with no pullbacks at all on the weekly time frame, but unlike the other pairs, I don’t see this pair as overbought; it still has signs that it can go higher.

About 6 months ago, we broke a level that was last seen in 1990. That move was followed by a pullback, and then we started the market we are currently in. On the lower time frames, we have been breaking through highs very consistently, and the 4H time frame has just shot through highs that were last seen on the 20th of November.

All that, combined with positive market sentiment towards the dollar, makes it seem like USD/JPY will continue setting some record highs in the coming weeks or months.