EURUSD has fallen even deeper. The current quote is 1.0550.
The main thing that triggered growth of the USD was the publication of an inflation report, meaningful for the Fed. Namely, the Core PCE Price Index. These are the data that the regulator uses to decide upon the interest rate.
Well, in January the index grew by 0.6% m/m instead to 0.4% expected. A month before, it did grow by 0.4% m/m. This means inflation is speeding up, and the Federal Reserve System will be increasing the rate quite rightfully. This was what supported the USD.
However, there was more. Personal consumer expenses of the US people in January leaped up by 1.8% m/m, while in December they lost 0.1%. Meanwhile, the index was expected to grow by 1.4%. Personal income, on the other hand, grew by just 0.6% m/m instead of 1.0% forecast. People spend more than they have. The inflation-friendly mechanism is obvious.
There is less than a month left until the nearest Fed's meeting, so any signal given by the regulator will attract lots of attention.