EURUSD: Bears Take Control as Markets Brace for CPIEUR/USDOANDA:EURUSDStone_HavenEURUSD is facing fairly clear downside pressure during today’s session. The USD is being supported by expectations that the Fed may maintain a more hawkish monetary policy stance, while US inflation remains a key concern. The market is particularly focused on today’s US CPI release, which is the final major inflation data point ahead of next week’s Fed meeting. Market pricing currently puts the probability of a 25bp rate hike at around 67–70%. On the Euro side, the ECB has just raised interest rates by 25bp to 2.50%, while ECB officials continue to leave the door open for further rate hikes if energy prices remain elevated. In theory, this should support the EUR, but the market is currently focusing more heavily on USD strength and the upcoming US CPI data. On the H1 chart, EURUSD has reacted sharply lower from the 1.1640 area, subsequently breaking below the support around 1.1610 and is currently trading around 1.1597. This indicates that sellers are currently in control in the short term. 🔴 Near-Term Sell Zone: 1.1605 – 1.1615 This is the key area I’m watching for a Sell on a retracement. * It coincides with the previous support area that has just been broken. * Price is currently trading below the EMA20. * The EMA20 is also below the EMA50, EMA100, and EMA200 → the short-term structure remains bearish. If EURUSD retraces back into 1.1605–1.1615 but fails to close an H1 candle back above this zone, it could provide a solid area to look for a Sell setup. 🔴 Strong Sell Zone: 1.1635 – 1.1642 This is the upper red zone on your chart, and I consider it a safer area to look for a Sell if price makes a deeper retracement. This area has previously triggered multiple price reactions and is currently positioned above the entire EMA cluster. If price returns to 1.1640, this will be an area where I would pay close attention to the H1 candlestick reaction. 🟢 Buy Zone: 1.1567 – 1.1573 This is not an area where I would Buy blindly simply because price has already dropped sharply. If EURUSD continues lower toward 1.1570, I would wait for confirmation such as: * A bullish reversal candle; * A false break / liquidity sweep; * Or an H1 candle closing back above the zone. Only then would I consider a Buy