EURUSD Resistance at1.16000 as Hot CPI Boosts the US Dollar!

Hey Traders,

In today's trading session, we are monitoring EURUSD for a potential selling opportunity around the 1.16000 zone. EURUSD is trading within a broader downtrend and is currently in a corrective phase, with price approaching the 1.16000 resistance area, a key support-turned-resistance level that could act as a barrier to further upside.

From a fundamental perspective, today's U.S. CPI data came in strong enough to reinforce the higher-for-longer interest rate narrative, supporting Treasury yields and strengthening the U.S. Dollar. As markets continue to scale back expectations for aggressive Fed rate cuts, the dollar remains well supported across the board.

This creates a challenging environment for EURUSD, particularly as the pair rallies into a major technical resistance zone. With the Fed maintaining a relatively hawkish stance compared to other major central banks, any rejection from the 1.16000 area could attract renewed selling interest.

As long as price remains below the 1.16000 resistance zone, the bearish structure remains intact, and we anticipate continuation toward lower support levels.