Credit Agricole CIB Research discusses EUR/USD outlook for the coming week.

"EUR/USD has dipped below its FX fair value that we estimate based on measures of EUR-USD rate spread and Eurozone credit risks among other drivers. In the near term, global FX factors like the path of the broad USD across the board, the resilience of risk sentiment and the performance of US tech stocks could remain key drivers of the EUR/USD outlook. This is partly because next week’s data calendar out of the Eurozone is light, with only the German ZEW and the final Eurozone CPI data for October on the docket," CACIB notes.

"We will also hear from several ECB speakers who should reiterate that the Governing Council is ready to bring sticky Eurozone inflation under control by hiking rates in coming months. EUR/USD is looking undervalued and oversold, and this could help it stabilise in the near term, especially if the latest broad USD rally starts to lose momentum," CACIB adds.