Citi maintains a bearish USD bias and a bullish EUR/USD bias into year-end.
"We stay bearish USD. The FOMC did not rock the boat yesterday, and played out very much in line with our expectations, with the key message continued, forceful stimulus, even without new dovish impulses," Citi notes.
"CitiFX Technicals notes that the pair closed above a good horizontal resistance level at 1.2178 and is trading at a new trend high. We expect at least a move towards 1.2375 (measured move) by year end and possibly and extension towards 1.25 as we saw in January 2018 after the September 2017 high gave away," Citi adds.