Bank of America Merrill Lynch Research discusses EUR/USD technical outlook and notes that the pair has confirmed a triangle top on the daily chart.
"The rallies in both US dollar indices (DXY and BBDXY) are making bullish progress this week. They have made new eight week highs are breaking trend line resistance and momentum (RSI) is breaking higher. May is also USD positive according to seasonality.
This kind of price action adds conviction to our US dollar index analysis for at least a USD bounce. It also adds confirmation to our early call on February 22nd that an index bottom and EUR/USD top couple be forming
Spot EUR/USD has confirmed a triangle top on the daily chart shown below. The estimated measurement suggests a decline in the mid-1.18s will follow. Notable support is present in the lower 1.20s due to the September 2017 highs, rising trend line support and the rising 200d SMA," BofAML argues.
In line with this view, BofAML maintains a short EUR/USD* position targeting a move to 1.15.