Despite the first signs of recovery demonstrated by the European economy (namely by Spain and Greece), the EUR is has been getting weaker since early August. Around that time, the European currency reached a three-month record against USD at about $1.3330 (its resistance) due to improving data coming from the Euro-zone. However, since then EUR has lost over 500 pips standing at $1.2800 because traders are concerned with the feasibility of European recovery. If EUR downtrend continues, the pair might drop to EUR support (far away) at $1.1880, which is 18-month low for the pair.

EUR/GBP – 0.8220

EUR downtrend is evident in the pair with GBP – EUR loses about 300 pips falling from EUR 0.8530 reached in mid-July. Now the pair stands at €0.8230 after having quite a volatile week and before the Euro PMI is released on Monday. If PMI surprises for the best showing recovery in the services and manufacturing sector, EUR might slide below the 0.8200 line while its nearest support is at 0.8070 pounds a euro.