EUR/USD made a move higher, climbing above the 2012 peak 1.3486 and is now at levels last seen at December 2011.
Click image to enlarge
The move still needs to be confirmed. It is important to note that the pair is still under uptrend resistance, in a channel that characterized it in the past weeks.
The move occurred after the release of the S&P Case Shiller House Price Index in the US, which showed a rise of 0.6% month over month and 5.5% year over year, exactly as expected. This publication doesn’t seem to be directly related, as there was no surprise.
The uptrend channel was in confluence with the 1.3486 line yesterday.
Jamie Coleman on Forex Live mentions the improving European bond yields as another factor pushing the euro higher.
Here is how the uptrend channel looks like. The screenshot was taken just after the pair retreated just under the resistance line of 1.3486.
As aforementioned, the breakout needs to be confirmed, especially as this uptrend resistance line remains intact.
For more on the single currency, see the EUR/USD forecast.
The markets await bigger events tomorrow: US GDP and the Fed decision.
Update:Â US Consumer Confidence falls in January
