EUR/USD broke lower again on Monday. Economists at ING analyze the pair’s outlook.

Support at the 1.0715/1.0725 area

EUR/USD now has support at the 1.0715/1.0725 area.

EUR implied volatilities are staying quite low and suggest the market is not preparing for a major break out. We agree and think this will be more of a case of EUR/USD trading out something like a 1.0700-1.0900 range this month rather than pushing down to 1.0500.