EUR/USD Rallies to 1.1456 as Soft US Inflation Pressures Dollar

EUR/USD has extended its rally to a fresh session high of 1.1456 as the US dollar remains broadly weak following another round of softer-than-expected US inflation data. The pair's advance reflects growing market conviction that the Federal Reserve may be closer to easing monetary policy, with declining inflation reducing the case for maintaining restrictive rates. The move higher is technically significant as the pair approaches a familiar topside target area that has previously acted as resistance. Traders are closely watching whether the pair can sustain gains above the 1.1450 level, which could open the door for a push toward the 1.1500 psychological resistance. On the downside, initial support is seen near 1.1400, with the session's prior consolidation zone providing a buffer. The combination of geopolitical uncertainty from US-Iran military tensions and weakening US economic data has created a bearish backdrop for the dollar. Near-term direction will depend on follow-through from inflation prints and any geopolitical escalation that could amplify safe-haven flows.