The Euro had a terrible week as traders became concerned with rising debt and financial trouble in various European countries (namely Greece, Spain, and Portugal).
The Euro began the week at $1.4160 and ended it at $1.3860, a downward spiral of 300 pips. This continues a downward trend of the Euro for the past two weeks of over 600 pips in total of the EUR/USD.
The Euro is certainly feeling the pressure as the market believes that the bigger economies will need to bail out the ailing Greek economy in the near future and may be forced to do the same to other countries which are feeling the strain in the not too distant future as well.
Whether the Euro will continue to go down or whether we’re in for a correction is anyone’s guess. There may be some correction as sellers of the EUR/USD may take their current handsome profits and wait for future opportunities or this downward spiral may continue. The upcoming week may be crucial for the Euro’s future.
