EURUSD Short Setup: Eurozone Contraction Meets Dollar Strength

Friday's session is wrapping up a week dominated by two competing narratives: AI infrastructure spending that keeps big tech bid on the longer timeframes, and a macro backdrop that's quietly turning more complicated. The dollar is sitting near a six-week high as US-Iran negotiations send mixed signals [1][2], and that strength is bleeding into most dollar pairs while weighing on risk assets at the margin. US data this week was a study in contrasts — Philly Fed manufacturing cratered to -0.4 versus a prior 26.7, new orders went negative, yet building permits surged 5.8% and initial jobless claims held steady near 209K. The…