The US dollar fell against the euro on yesterday session after a spike higher in German Bund yields overshadowed a similar rise in US Treasury yields and generated demand for the European currencies.
The European Central Bank (ECB) 1 trillion-euro stimulus program had driven European rates lower, with German 10-year Bund yields threatening to slip into negative territory as recently as last month after hitting a record low of 0.05% on April 17.
Today on the economic agenda we have the German preliminary Gross Domestic Product (GDP) for the 1st quarter that is estimated to fall from 0.7% to 0.5% and from Eurozone the preliminary Gross Domestic Product (GDP) for the 1st quarter where is estimated to rise from 0.9% to 1.1% showing a rising trend that has a positive effect on the EUR.
On yesterday session EURUSD rose and close in the green in near the high of the day, above the 10-day moving average. The currency is still in a recovery phase and stochastic is showing a slight bearish to neutral momentum but still above the 50 mid line.
Expecting an upward move to year high at 1.1459 on a break above previous day high at 1.1278 (scenario 1) or a break below the daily support at 1.1097 could drive the pair down to a key level at 1.0900.