FXStreet reports that economists at Rabobank said that EUR/USD pair still risks a move back to 1.20, but it is seen trading at 1.18 on a 12-month view.

“While we continue to expect the Fed to battle with the markets in the months ahead to push through the message that its policy will remain extremely accommodative, market optimism in the US reflation trade is likely to ensure that the USD retains a resilient tone.” 

“On the expectation that the Fed will have success in containing inflation fears and bond yields, we do see scope for EUR/USD to push back to 1.20 in the coming weeks. That said on expectations of a strengthening US recovery this year, we have lowered our 12-month forecast to 1.18 from a previous forecast of 1.23.”