Nordea Research discusses EUR/USD outlook, and still thinks the pair is deemed for sideways trading before an eventual breakout.
"We await a technical breakout before turning either bullish or bearish on the pair. On the topside 1.2550 is the level to watch, while a break below 1.2150 could mean that the uptrend in EUR/USD is broken.
Recently, relative 2s5s has been a strong driver of EUR/USD and as the ECB remains dovish (despite scrapping the easing bias on the size of the QE program), we think the relative 2s5s steepening of the EUR-curve is paused for now. We still see risks tilted towards another round of 2s5s steepening of the EUR-curve in the autumn, as the ECB QE-exit gets closer," Nordea argues.