The euro had an unusually bearish day yesterday, after hitting some key resistance levels against the safe haven US dollar and yen. Investors did not seem willing to let the EUR/USD pair move very far above the 1.3500 level, as there are still some uncertainties regarding the extent of euro zone debt. Once the pair hit 1.3535 yesterday afternoon, it promptly corrected itself and has dropped close to 100 pips.

Meanwhile, the EUR/JPY was trading as high as 111.05 before changing direction. The pair has fallen over 60 pips since yesterday afternoon and is currently trading just above the 110.40 level. Analysts are warning that as long as the threat of another euro zone debt crisis exists, the 17-nation common currency is unlikely to reach the high levels it saw in the middle of last year.

Today, traders will want to pay attention to a batch of US data scheduled to be released this afternoon. At the moment, analysts are predicting that the data will show growth in the US economy, which would likely lead to further bearish movement for the euro. At the same time, such a rise may also signify a growth in risk appetite during this time of economic distress and push up on the EUR in the short-run.