The currency pair EUR/USD had broken out and expected to resume its upward movement while inflation data appeared to be stronger than anticipated that lead the European yields higher.
The yield differential currently moves to the side of EU yields that paved the way for the single European currency to gain higher.
Confidence further surges on its renewed decade highs while consumer lending also increased. Most of the headlines from the United States came in better than expected, however, American yields are following its EU counterparts that put pressure to USD.
The pair broke out through its fresh 1-year peaks over the resistance at 1.1365 around highs of August 2016 while trying to test 1.1616 level near May 2016 peaks.
The support reached 1.1365 mark which is a previous resistance, followed by the 10-day moving average seen at 1.1148 region.
The pair’s momentum became positive when the moving average convergence divergence (MACD) produced a crossover buy signal. It was generated due to spread that crosses on top of the 9-day moving average. The histogram shifted from negative to positive zone and confirmed a buy signal. The index prints in the black with an ascending trajectory indicating a higher exchange rate.