Strategists at Rabobank keep the constructive outlook for the pair while above the 1.1340 pivot. Key Quotes “After fairly volatile March, EUR/USD has been trading in a relatively narrow range so far this month”. “While the price action hasn’t been particularly inspiring since the beginning of April, it is worth pointing out that a sustainable trade above the 1.1340~ pivot keeps the short-term bias skewed to the upside with the October high at 1.1495 as the key level to watch as a break higher would be a constructive signal”. “Although further gains in EUR/USD would be a blow to the ECB due to persistently low inflation, it could be an opportunity to establish fresh short EUR/USD positions”. “In our view the market is too bearish about the Fed currently expecting no hikes at all this year”. For more information, read our latest forex news.