EUR/USD Daily Technical Analysis for March 23, 2017

The EUR/USD moved higher on Wednesday rebounding from its lows of the session, following dovish ECB speak from the French central bank head Villeroy. The EURUSD rate hit a fresh 7-week high at 1.0825, but failed to breach resistance near the February highs at 1.0829.  A break of this chart level would lead to a test of the 200-day moving average at 1.0888. Support is seen near the 10-day moving average at 1.0711. Momentum remains positive as the MACD (moving average convergence divergence) index prints in the black with an upward sloping trajectory which points to a higher exchange rate.

Dovish ECB Speak Failed to Derail the Euro to USD Rally

ECB’s Villeroy said that accommodative policy is still needed. The French central bank head said the central bank warded off the “mortal danger of deflation” and is now clearly processing toward its inflation goal as the economic outlook is improving despite uncertainty.