ING Research discusses EUR/USD outlook and looks for a downside breakout if US CPI report surprises to the upside this week.
"Upside breakout is still possible since this week we will very much return to the subject of inflation and what central bankers plan to do about it. Wednesday sees the release of October US CPI - seen pushing to a new cyclical high near 5.8/5.9% YoY. This comes at a time when the Atlanta Fed GDPNow measure forecasts the economy growing at 8.5," ING notes.
"Yet as above, we would favour EUR/USD staying offered in a 1.1520-1.1620 range this week and see whether US CPI or any Fed speakers provide enough ammunition for a downside breakout," ING adds.