There is room for the USD rebound to extend further. Therefore, economists at MUFG Bank expect the EUR/USD pair to challenge the 200-Day Moving Average (DMA) at around 1.0330.

Improving cyclical outlook better priced into EUR

“There is room for the reversal lower to extend further in the near-term.”

“We are expecting the EUR/USD pair to fall back towards support from the 200-DMA that comes in at around 1.0330.”

“The price action highlights that the Eurozone rate market and EUR have already moved along way at the start of this year to better reflect the improving cyclical outlook.”