Following the downside break of 1.0950 we believe that EUR/USD has further room to fall near-term. Technically, we could see a further fall towards the 1.0700-1.0850 area. According to IMM data, the market is short EUR/USD but not in stretched territory. As such, this increases the sensitivity of the cross to relative rates, which are bearish for EUR/USD near-term. With little more than a month to maturity, the delta risk profile will rise for an unchanged spot leaving the position increasingly vulnerable to a move lower in the EUR/USD. The 1.0150 sold put option is far out of the money, yet the vega-profile remains ... (full story)