Danske Research maintains a bearish bias on EUR/USD and looks to sell the pair on rallies over the coming weeks.

"While the initial market reaction in FX markets to the ECB announcement was fairly limited, the EUR initiated a broader-based decline during the press conference. EUR/USD is now firmly below the 1.10 mark and EUR/Scandies are also trading considerably lower. In recent weeks, EUR/USD has defied the shift and sudden underperformance of Eurozone equities, which we otherwise deem to have been an important driver behind the EUR/USD rally since September (Eurozone equities overperforming during this period)," Danske notes.

"Our tactical conviction on EUR/USD is not high but we maintain a clear sell-on-rallies bias for the cross as we still think medium-term drivers indicate that EUR/USD is overvalued (and not undervalued," Danske adds.