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Rising EUR/USD?

The USD strengthened against JPY, but remained weak against EUR even after the release of the weak German ZEW Economic Sentiment Index. The index is a leading indicator of economic health. 

Although the ZEW indicator if Economic Sentiment declined by 6 points and is currently at a level of 55.7 points but the indicator reflecting expert’s assessment of the current economic situation for Germany gained 8.8 points in February reaching a level of 50 points which is the highest level since August 2011. The indicator for the current economic situation in Eurozone has improved by 8 points. ZEW president said that this decline in economic expectations should not be overstated as the majority of surveyed financial market experts remain optimistic. Seems like EUR is reacting to the optimism in the market and still seems bullish as seen through the broad data.

On hourly chart EURUSD found support by 50 day moving average and broke out from the resistance at 1.3717 to continue its uptrend.