Danske Research maintains a structural bearish bias on EUR/USD over the coming months targeting the pair at 1.06 in 3 months and 1.03 in 6 months.

"We maintain the strategic case for a lower EUR/USD based on relative terms of trade, real rates (growth prospects) and relative unit labour costs. Yet near-term euro area growth optimism, relative rates and lower energy prices could add temporary EUR support," Danske notes. 

"A key factor to keep an eye on in the coming month is a potential turnaround in euro area activity data," Danske adds.