EURUSD has been downtrending almost uninterruptedly since hitting an 18-month high of 1.1275 on July 18, resulting in a series of lower highs and lower lows. Most institutional Fx analysts agree that since mid-July, the euro-dollar has experienced a remarkably difficult period. The pair fell 4.5% over the period, which must be considered a substantial depreciation for the economically challenged euro.

The main reason for this movement may be the different economic developments in the two currency areas. While the U.S. economy is doing well, sentiment indicators in the euro zone paint a rather bleak economic picture. The dollar has also become more attractive as yield spreads have grown significantly. EURUSD last traded at 1.0794 after falling from mid-May highs of 1.1277.

According to the European Commissioner for economic affairs Paolo Gentiloni, who was interviewed by CNBC on Saturday, Europe is facing the impact of a "double crisis," but the region still can avoid a recession. "From a geopolitical point of view, the crisis also impacted the U.S. and all the world, but from the economic point of view, it seriously impacted Europe and Germany in particular," he said.