ANZ Research discusses EUR/USD outlook.

"EUR/USD broke above 1.17 in August, and this move was not driven by USD weakness alone. Euro area economic resilience has been an equally important driver. Q2 GDP rose 0.4% q/q, while the composite PMI has increased for consecutive months, with the August flash improving in both manufacturing and services. ..This should keep the ECB on a hawkish, data-dependent footing and give EUR an edge over other crosses. The 9–10 September meeting also brings the ECB's first updated staff projections since June. If the forecasts validate the resilience narrative through firmer growth and inflation holding up, it would be EUR-supportive and consistent with our base case. The key risk is that the ECB places greater emphasis on the drag from higher energy prices and revises up its inflation forecasts, which could cap further EUR/USD upside," ANZ notes.

"Overall, we remain mildly constructive on EUR/USD over the coming month, with risks skewed to the upside. A stronger-than-expected run of data and supportive ECB forecasts could see the pair extend decisively above 1.17. We continue to view dips as a buying opportunity," ANZ adds.