EUR/USD: Lloyds bank expects euro to keep rallying as long as pair remains above 1.12

Lloyds Bank notes that the 1.1200/1.1190 zone must hold in order to maintain upward pressure on the EUR/USD on the forex.

"As of right now, the EUR/USD remains in the 1.12/1.13 range.

Although - according to the technical analysis - we believe that a long-term foundation has been formed at 1.0350, we are still anticipating a medium term range and 1.1350/1.1450 defines the top of this range.

A fall below 1.1200/1.1190 and then 1.1070 would suggest that a lower top has developed within this range. As long as these support levels hold, the trend since January's lows remains intact for a test of the highs.

In the short term, our intraday studies are still reporting a decline, but this has been the case for a few days and prices have continuously rejected this during the week."