EUR/USD is currently struggling to stay above the key 1.05 support. A move below this level looks likely this week, economists at ING report.

EUR recovery requires a shift in the ECB policy statement

“An appreciating dollar, underperforming European equities and fears of a prolonged Russia-Ukraine conflict as well as ever-deteriorating diplomatic relations between Moscow and Brussels all continue to point to weakness in the pair.”

“A EUR recovery likely requires a shift in the European Central Bank policy statement, and the timing on that remains uncertain (the next meeting is on 9 June). Until that happens, EUR/USD remains at risk of dipping below 1.05.” 

“A week with the FOMC meeting and not much action on the eurozone calendar/ECB speaker side could definitely see a decisive technical break lower materialise.”