EUR/USD outlook: Rabobank

EUR/USD:

• The precipitous fall from the 2014 high at 1.3993 to recent low at 1.0495 fuelled market expectations that EUR/USD could weaken to the parity or even lower.
  
  
• While we are not trying to catch a falling knife as the downside trend is very well defined, it is worth pointing that the long-term trendline support comes at around 1.00, which should make this psychological level even more difficult to clear.