EUR/USD: the euro remains supported on the forex despite the reversal (Lloyds Bank)

The EUR/USD pair remains supported according to the Lloyds Bank.

"The EUR/USD dropped to 1.11 following Draghi's speech. We could consolidate in that area, which is constructive. There are risks that the decline will continue towards 1.1065/25, but as long as we hold above this threshold, the current bullish phase should extend to 1.1350/1.1450.

In the longer term, we saw the break-up of 1.0450 last year as the last phase of the bearish cycle that began in 2008 near 1.60. The European elections have so far not caused panic, and 1.0340 now represents a long-term trough. So in the long run, the next big move should be towards resistance at 1.2000-1.2500. The question is whether we will first see an in-range evolution under the main resistance level at 1.1450. Interest spreads, at this point in time, suggest that this is the case."