ANZ Research maintains a cautious bias on EUR/USD in the near-term.

"The EUR’s sensitivity to oil prices on a terms-of-trade basis adds to our caution, particularly as we expect elevated energy prices to persist. We have revised up our outlook for Brent crude and expect prices to remain above USD90/bbl for the remainder of the year, which should cap sustained EUR/USD rallies," ANZ notes.

"Near-term resistance is likely to be seen around 1.1850, with upside beyond this likely difficult to sustain without a more durable easing in geopolitical tensions. This caution has been reflected in CFTC non-commercial positioning data, which have sharply shifted to net-short recently, though is far from stretched, with potential for further shorts to be added," ANZ adds.