Direct answer
Dollar strength and inflation surprises may weigh on EUR/USD.
Most likely bearish catalysts
Fed hawkishness
Weakening fed hawkishness can pressure EUR/USD and accelerate liquidations.
Weaker eurozone growth
Weakening weaker eurozone growth can pressure EUR/USD and accelerate liquidations.
Dollar strength
Weakening dollar strength can pressure EUR/USD and accelerate liquidations.
What confirms the selloff
- Confirm the drop is tied to real weakness in ecb vs fed expectations instead of a brief flush.
- Check whether the move is spreading across related forex markets.
- Only trust continuation if breakdowns hold after the first fast selloff.