Citi flags a scope for further EUR/USD downside in the near-term, while staying structurally bullish through year-end.

"CitiFX Strategy thinks EURUSD downside could go a bit further, as US exceptionalism may lead to some shift of funding into EUR," Citi notes. 

"But we’re eyeing a bottom as US-EU real yield spreads will likely fall again with retracement in optimistic Eurozone inflation expectations, and in any case we remain bullish EURUSD over time," Citi adds.