Forex Signals: EUR/USD Sell Setup as Fed Nears September Hike

The Federal Reserve's tightening bias is firming as inflation stays sticky and crude oil climbs, reinforcing the case for a September rate increase. That backdrop supports continued dollar demand against the euro, where rate differentials remain the dominant driver for near-term positioning.

Trade Setup: Sell EUR/USD at 1.0850, Take Profit at 1.0720, Stop Loss at 1.0920. Risk/Reward ratio: 1:1.85. The short bias aligns with expectations that the Fed will not stop at a single hike, extending dollar support through the fourth quarter.

Traders should monitor upcoming U.S. CPI prints and Fed commentary, as any dovish surprise could quickly invalidate this setup and trigger a reversal toward the stop level.