The Euro aggressively appreciated against the Dollar on Thursday afternoon with prices punching above 1.2500, after Mario Draghi said economic data indicated “solid and broad” growth. Bulls received further inspiration to elevate the Euro higher after Draghi expressed optimism over inflation potentially rising in the medium term. Although recent exchange rate volatility caused some uncertainty which “required monitoring,” traders still remained convinced that QE would halt before year-end. The bullish sentiment towards the European economy and expectations of easy monetary policy in the region coming to an end, is likely to continue stimulating appetite for the Euro.
Taking a look at the technical picture, the EURUSD has jumped to levels not seen since December 2014 above 1.2500. The currency pair is bullish on the daily and weekly charts with a breakout above 1.25 opening a path higher towards 1.2560 and 1.2600, respectively. Alternatively, a failure for prices to secure a daily close above 1.2500 could invite a decline back towards 1.2440.
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