EUR/USD: Several items support a rise of the pair (Danske Bank)

Danske Bank still believes that the EUR/USD should continue to rise on the forex.

"EUR/USD is potentially in the process of forming a base. Relative rates support the decline of the EUR/USD, while the Fed is undervalued and the ECB is considered overly hawkish. However, postponing the clarification of the tax reform will support the USD much less in the short term.

We believe that Marine Le Pen will not win the presidential election in France. The election should therefore not weigh too much on the EUR/USD. In the medium term, we believe that the EUR/USD will continue to rise due to the large current account differential and the undervaluation of the EUR.

We are revising our EUR/USD forecast to 1.06 within 1 month (1.04 previously)."