By: Hillel Fuld
The EUR hit a four month low after a sharp decrease coming as a result of concern over Greece's fiscal problems. The fall also occurred in response to the currency falling below a key chart level that might signal a bearish trend.
Traders stated that the EUR's slide below its 200 day moving average of $1.4296 provided investors with a technical indication that selling the currency would be a good idea. Its break below $1.4250 and the December low of $1.4220 caused loss cutting orders and brought on widespread EUR selling.
"We still need to see whether the euro's fall will be temporary or something of a big trend. But one thing that's clear for now is that people are in the mood to get out of risky bets, including on the Aussie," said a senior trader for a Japanese securities firm.