The Euro still appears to be lacking the strong idiosyncratic bullish narrative that can drive the pair sustainably above into the 1.0650/1.0700 range.

Markets will likely await cues from the European Central Bank next week, and a few more data out of the Eurozone, but the chances of a rapid upturn in Euro bullish momentum aren’t too high. This means that EUR/USD should remain almost entirely driven by the USD leg for now.

More swings within the 1.05/1.06 range may remain the norm for now, but we see the balance of risks as slightly tilted to the downside.