Danske Bank sees 1.22 target for the pair in a 3-month horizon. Overall, a bounce higher in EUR/USD generally seems fair given the recent strong trend lower and as positioning has become significantly stretched. Moreover, the cross has been technical oversold according to RSI for several weeks, also suggesting a high correction risk. However, while the bounce might not reverse in the coming days, given the lack of near-term drivers, the trend of a stronger USD remains firmly in place both against low yielders like the EUR, CHF and JPY and currencies like the NZD and AUD, and we still target EUR/USD at 1.22 in 3M and 1.20 in 6M.