EUR/USD seen between 1.21 and 1.26 – Danske Bank

The pair is expected to remain within a 1.21/1.26 range in the near term, according to Mikael Milhoj, Senior Analyst at Danske Bank.

Key Quotes

“The removal of QE flexibility, which we expect to see from the ECB today, could support EUR/USD on impact but a dovish tone at the press conference would be likely to help moderate such a move somewhat".

"We still expect the cross to stay in the 1.21-1.26 range near term; a key technical level is 1.2555 (YTD high)".

"For EUR, what is important at present is that the ECB keeps up the sense of a continued move towards policy ‘normalisation’ and that will continue to support the cross further out”.