Yeah because the Yanks are selling the crap out of it... I looked at the hours for the past two weeks and have noticed that the Americans did the first sell off, then the Europeans, and finally the Asians. But throughout the entire time the American's have been sellers, and that makes me wonder that we might have a quite a jump back... BTW If the Euro stays this low the next earning season and beyond will be a field day!!!! Euro companies will make more, and American companies will be suffering quite a bit... I think that might even be the cause of correction.
You make a good point - I'm worried about a sharp reaction in the EUR as well. Look at the Open Interest in the Dollar Index Futures (line along the volume in the image attached) and tell me what you make of it.
The next earning season is still three weeks away, the USD strength could only affect one third of a quarter's earning. And I don't think the tail can wag the dog.
I assume what you mean is that the EURO's drop will start to reverse itself pretty soon, which I think won't happen until next year.