EUR/USD extends gains as the dollar resigns to its next leg lower

<p>The dollar is finding itself caught in a bad spot all across the board and EUR/USD is one of the main culprits. The pair broke above its April and May highs around 1.1075-95 yesterday and buyers are keeping that run going today.</p><p>The dollar was already vulnerable heading into the US CPI data and the inflation numbers pretty much solidified the next downside leg for the currency this week.</p><p>In the case of EUR/USD, the break above the resistance levels mentioned now sees a path towards testing the 200-week moving average (blue line) next at 1.1181 as well as the 1.1200 mark.</p><p>If buyers can pull above that, it will extend the momentum further towards 1.1400 with the January to February 2022 highs at 1.1482-95 a key region to watch as well.</p>

This article was written by Justin Low at www.forexlive.com.