EUR/USD remains under pressure from USD strength and uncertainty around monetary policy. This week, attention shifts to key U.S. inflation data, particularly CPI and PPI, which could significantly impact Fed expectations and the dollar.

From a positioning perspective, COT data shows heavily stretched bearish EUR positioning. This creates a potential bullish narrative if shorts continue to unwind and sentiment shifts back toward the euro.

Technically, the bullish structure remains valid, with 1.16221 acting as the main upside target. If momentum continues, price could potentially reach and trade above this level.