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Euro / U.S. Dollar
Updated

EUR/USD Slumps – Shakeout or New Sell-Off?

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The euro took a sharp nosedive, falling from 1.168 to nearly 1.160 in its steepest drop of the week, after hotter-than-expected U.S. CPI data shocked the market. This move reflects a classic repricing of rate expectations, as traders quickly rotated back into the dollar – the “sleeping giant” now seemingly reawakened.

Is this just a technical pullback or the beginning of deeper pain for EUR/USD bulls? With the Fed signaling it may hike again if inflation persists, the macro bias clearly favors USD strength. However, if the 1.160 support holds and we see a strong bounce with rising volume, a short squeeze could be in the making – catching late bears off guard.
Trade closed: target reached

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