MUFG Research maintains a long EUR/USD position in spot from 1.10950, targeting a move towards 1.1350, with a stop at 1.0750.

"In light of recent developments, we are more confident that the Fed will pause their hiking cycle before the ECB. The narrowing of yield differentials between the eurozone and the US has been helping to the euro to strengthen against the US dollar this year," MUFG notes. 

"We see room for this move to extend further in the near-term and recommended a new long EUR/USD trade idea," MUFG adds.