Bank of America Global Research likes short EUR/USD exposure in the near-term, while maintains a bullish bias over the medium-term.

"US real rates have risen vs. other major economies due to the resilience of the consumer and labour market following the energy shock, which also suggests policy rates are not as restrictive as commonly assumed. Unlike the EUR, the dollar has benefited from the pricing of a Fed hike. We think there is room to price more tightening on US data & the shift in Fed rhetoric, although Warsh's view at the June FOMC will be key. For now the balance of risks continue to favour short EUR/USD," BofA notes.

"Our medium-term EUR view remains largely constructive. For EUR-USD, levels below our 2Q forecast of 1.14 would be an opportunity to raise USD hedges, on eventual growth convergence, Iran normalisation, and supportive valuations," BofA adds.