The expansive ECB policy and sustained bond buying should be able to cap significant EUR/USD upside with further selling interest in the 1.1500/1600 area, but the bank will be dependent on a more hawkish Fed tone and US acceptance of a stronger dollar to push the pair sharply lower from current levels. Overall, there is scope for a slightly more confident Fed tone, but clear hints that a rate hike is coming will be needed to push EUR/USD below the 1.1170/1.1200 support area. EUR/USD has been registering net appreciation since the end of February, primarily due to the unwinding of Fed tightening expectations. There ... (full story)