One of the key triggers for the dollar rout last week was a break higher in EUR/USD to its highest levels since early last year. And that culminated in a break above 1.1200 as well as a hold above the 200-week moving average (blue line) in the pair:
EUR/USD weekly chart
That points to a strong bullish conviction as the dollar falters, with the euro also benefiting from the still more hawkish ECB at the moment.
From a technical perspective, there is good reason to expect further gains in EUR/USD so long as price momentum holds above 1.1200 as well as the 200-week moving average highlighted above.
The next plausible target may be the January 2022 highs around 1.1482-94 next but a lot will also depend on dollar sentiment this week before we get to the Fed next week.
In that lieu, US retail sales tomorrow will be the next potential trigger. And for now, buyers will keep the faith in hoping for a catalyst to work with in order to extend the upside leg from last week.