The EUR/USD has dropped to the 1.3360 low so far. The Euro volatility remains high as the debt crisis continues with no clear solution. Investors are shifting back to the U.S Dollar and Japanese Yen as a more stable investment. Intraday bias remains on the downside, as long as the 1.3934 minor resistance line is not broken.

ECOFIN (The Economic and Financial Affairs Council) meetings are underway in Poland to discuss and resolve the Eurozone debt crisis. The major topic in the meetings will be the Greek debt and its next installment payment, which is opposed by a couple of EU members without receiving collateral. EUR/USD has dived to the 1.3752 after hitting the 1.3934 high.

Skepticism about the Eurozone being able to get out the debt crisis is on the rise. Many investors are starting to sell their long-term position of the Euro for the U.S Dollar. Although, the U.S Dollar may not be the ‘go-to’ currency for all, it does look more stable than the Euro at this time. On Friday, the EUR/USD dropped to the 1.3626 low … a drop of 250+ pips in one day.

The EUR/USD broke below the 1.4000 level and hit the 1.3944 low so far. The European Central Bank President Jean-Claude Trichet claimed that a ‘downside risk’ to the EU economy is possible and that the interest rate will most likely remain the same. Trichet added, inflation in the Eurozone has paused for the moment.