FXStreet (Edinburgh) - Senior Analyst at Danske Bank Christin Tuxen sees the 1.05/1.10 range prevailing in the short-term horizon, although with risks tilted to the downside. Key Quotes “In our view, EUR/USD is currently caught between potential downside from relative rates on the one hand and support from fundamentals, stretched positioning and cyclical conditions, on the other”. “As a result, we see the cross range-bound in the 1.05-1.10 interval near term with a possible move to the lower end as the Fed maintains a hike-determined stance despite recent China and oil worries”. “Following a near-term re-pricing of US money market curve, we believe that the clearing skies for the euro zone cyclically and thus the market buying into ECB end of easing will allow EUR/USD to drift higher as warranted by fundamentals and as speculators unwind EUR/USD shorts”. “We have kept our forecast profile unchanged and thus continue to see EUR/USD headed towards 1.16 in 12M”. For more information, read our latest forex news.