UBS targets EUR/USD at 1.12 in 1-month and 1.14 in 3-month. They have 3 key points why they are taking this view.
"EUR/USD is the view of ours that receives the most pushback from
investors, most of whom appear significantly more bearish. The pushback
to our view is often that even if market pricing for the Fed and ECB is
correct, the very act of the Fed hiking will be bullish for the dollar.
So, even if the first hike is fully priced, and the cycle ends up being
very gradual, EUR/USD can still fall sharply. We remain sceptical of
this argument,UBS argues.
OK, all you EUR bulls … don’t mention it, you’re welcome 😉