Credit Agricole CIB Research highlights 2 key macro drivers that point to a lower EUR/USD ahead,

"The past few weeks witnessed a marked deterioration of the relative EUR-USD fundamentals. This was reflected in the joint drop of the EUR-USD nominal rate spread our proxy for the relative ECB-Fed policy outlook - and the EUR-USD real rate spread our proxy for the relative Eurozone-US growth outlook. The former reflected the reassessment of dovish market expectations that boosted the relative rate appeal of the USD vs the EUR. The latter followed a string of disappointing data releases in recent weeks that cast doubts over the Eurozone growth outlook," CACIB notes

Looking ahead, we believe that the two fundamental drivers could remain a drag on EUR/USD. Starting with the nominal rate spread, the upcoming ECB and Fed meetings in June could keep the EUR rate disadvantage vs the USD in place if the Governing Council delivers a 'dovish' hike while the FOMC signals that sticky US inflation could delay any meaningful easing. The EUR-USD real rate spread should also remain subdued as the continuing conflict in the Middle East perpetuates the global negative energy shock that is particularly detrimental for the Eurozone economy," CACIB adds.