The Euro sank to a 9 year low in early Asian morning session which is being seen as a huge negative for the currency in the near term. The Euro broke below the $1.20 level which it had taken support at multiple times over the last couple of years. The breakdown is being seen as a huge negative for Euro bulls. The sell off in the Euro is on the back of comments from Germany about the fact that the Eurozone can survive if Greece decided to exit the Eurozone. The comments are back on the news that the principal opposition party in the Greek election, which is also the front-runner in forming the next government said that it would want a write off in Greek debt which is being seen as a huge negative as it might lead to credit defaults.
Traders in the coming week would be closely watching the release of the FOMC minutes on Wednesday which would provide an insight into the stance to be undertaken by the Federal Reserve with regards to short term interest rates in the near term. Traders would also be closely watching the release of the non farm payroll report to be released on Friday which would provide an insight into the growth trajectory of the labour markets in the United States.
When looking at the daily charts for the EUR/USD, the currency pair is in a strong downtrend and shows no signs of strength at current levels. The EUR/USD currently trades below all important daily moving averages which is a huge negative. The momentum indicators along with the relative strength index has been showing no signs of a reversal and continue to trend lower which is a huge negative and is indicative of the shift of momentum towards the sell side.