EUR/USD has moved higher toward a fresh monthly high as the market reassesses the outlook for the US Dollar. The pair’s recent advance comes as traders increasingly focus on upcoming US inflation data, which could determine whether the Dollar’s recent weakness continues or reverses.

The Euro has benefited from shifting expectations around US monetary policy, although the rally is approaching an area where sellers have previously emerged. A stronger-than-expected US CPI reading could provide renewed support for the Dollar and potentially limit further upside in EUR/USD.

For traders, the key question is whether EUR/USD can maintain momentum above its recent breakout area. A sustained move higher could strengthen the bullish structure, while a rejection could signal another period of consolidation.

Market focus: US CPI remains the primary catalyst for EUR/USD. Traders should watch price reaction around key support and resistance levels rather than relying solely on the direction of the initial news-driven move.