EUR/USD: Westpac believes current range could be broken on the downside

According to Westpac, the current EUR/USD range could be broken through on the downside.

"The three-month EUR/USD range at 1.08-1.14 seems to be extensible for some time."

"The medium-term risks, however, remain biased to the downside. The renewed fall in commodity prices and the weak growth point to a weak inflation outlook, and therefore high risks of an extension of QE by the ECB."

"The 1.08-1.14 range should therefore break on the downside in the end."