Credit Agricole CIB Research sees a scope for EUR/USD downside ahead of next week's FOMC.

"Investors have frontloaded a significant divergence between the Fed and the ECB which may not materialise before the Fed starts easing policy in H224. Recent portfolio flows have further increased the EUR beta to risk while corporate EUR-buying seems to be on the wane. All this could make EUR/USD more vulnerable to potential risk aversion spikes from here," CACIB notes.

"We therefore see downside risks for EUR/USD from current levels ahead of the upcoming Fed policy meetings in particular that could disappoint the dovish market expectations. We also think that risk sentiment could weaken in the coming months on the back of weak global data and a persistently hawkish central bank policy stance in a blow to EUR/USD," CACIB adds.