Goldman Sachs suggests that, unless there is more evidence of divergence in favor of the eurozone, it is unlikely that the EUR/USD will break the recent range towards the topside.
The bank has maintained a year-end target of 1.10 throughout the year, a level that has already been tested twice but has retracted both times as the market reassessed the relative policy path.
Goldman Sachs predicts that this oscillation will persist. Their global forecasts imply there is likely more room for Dollar strength in the near term than what the market is currently pricing in, and they believe the total Dollar depreciation for the year will be more constrained than commonly anticipated.
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