The euro advanced against its US counterpart on Monday, as ECB President Mario Draghi signaled optimism in the Eurozone recovery and acknowledged that quantitative easing was playing a positive role.

The EURUSD climbed to a daily high of 1.046. It would subsequently consolidate at 1.0235, advancing 85 pips. The pair is testing the initial resistance at 1.0920. A breach of that level would expose the 1.10 handle.

The EURUSD pulled ahead last week after the United States Federal Reserve said interest rates will probably rise much slower than previously forecast. The rate-hike hesitation has weakened the dollar across the board.

European Central Bank President Mario Draghi testified before a European Parliament committee on Monday and acknowledged that the region’s economy is strengthening.

“The basis for the economic recovery in the euro area has clearly strengthened,” Draghi said. “This is due to in particular the fall in oil prices, the gradual firming of external demand, easy financing conditions driven by our accomodative monetary policy, and the depreciation of the euro.”

The ECB’s quantitative easing program was launched earlier this month to promote price stability and economic growth. Under this program the central bank will print money to buy 60 billion euros worth of sovereign bonds. The program is expected to run until at least September 2016.

In economic data, Eurozone consumer confidence appreciated markedly this month, as falling energy prices and renewed optimism in the recovery lifted spirits to their highest level in nearly 8 years. The European Commission’s gauge of consumer confidence improved to minus-3.7 in March, up from minus-6.7 in February. That was the highest level since July 2007.

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