EUR/USD has gathered bullish momentum and advanced to fresh multi-month highs near 1.1000 on Wednesday. After the data from the US showed that the annual CPI fell more than expected in March, the US Dollar came under pressure, fueling the pair's rally.

The EUR/USD pair traded as high as 1.0936 during European trading hours, as financial markets remained optimistic ahead of the release of the United States Consumer Price Index (CPI). European stocks edged firmly north, with US futures advancing and government bond yields holding ground, steady around Tuesday's closing levels. Still, the action was relatively limited across the FX board as investors held ground.

The EUR/USD pair hovers around the mentioned high with a bullish bias. The pair is up for a second consecutive day, and the daily chart shows it's above all its moving averages, which head firmly north. At the same time, technical indicators resumed their advances within positive levels, reflecting strong buying interest.

In the near term, and according to the 4-hour chart, the positive momentum is even clearer. Technical indicators aim higher almost vertically and well above their midlines. At the same time, the pair accelerated north beyond its moving averages. The 20 Simple Moving Average (SMA) remains directionless at around 1.0900, while the longer ones advance below it, reflecting bulls' dominance.

Later today, the Federal Reserve will publish the latest FOMC Meeting Minutes. Chair Jerome Powell & co were relatively dovish at the moment, and the document is not expected to bring hawkish surprises. Instead, it could confirm the ongoing sentiment and push the Greenback further lower.

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Apr 12 2023