TD Research sees a scope for EUR/USD to retest recent lows below 1.18 This week.
"TD expects a solid round of US data this week, which may offer near-term USD support when coupled with what might feel like a hawkish Powell testimony. The USD continues to run inversely to US data, meaning that good data has pushed it lower. We think that correlation will start to flip if good data implies that the Fed is "live" this summer," TD notes.
"As a result, we could see EURUSD retest the recent lows below 1.18,"TD adds.