Strategists at Westpac have recommended selling the pair on rallies towards the 1.1200 area. Key Quotes “EUR/USD materially overvalued against 2yr Bund-Tsy spreads, the latter suggesting 1.05/06 is more "reasonable". “That said a run at 1.12 likely if Draghi does not leapfrog expectations, as seems likely”. “Any squeeze though likely lacks legs, the FOMC a week later likely to sound more hawkish noting that future meetings are live and the risks are balanced. EUR a sell into 1.12”. For more information, read our latest forex news.