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Analyst at Danske Bank Aila Mihr suggested the pair could trade below the 1.1500 handle for a longer period.

Key Quotes

“While EM currencies saw some relief yesterday as the lira issue continued to calm down, EUR/USD and EUR/CHF embarked on another level shift lower. The move was steady throughout the day with no obvious driver”.

“The recent break of key technical support levels means that EUR/USD and EUR/CHF are in unchartered territory, which tends to exaggerate any moves”.

“The relative cyclical picture is starting to shift more in favour of EUR with notably economic data starting to surprise on the upside lately whereas the opposite is seen in the US. While EUR/USD could stay below 1.15 for an extended period as the USD carry weighs, the relative growth outlook should hold a hand under the pair in Q4″.