FXstreet.com (London) - Last week two major European states had rating outlooks pulled down, as ratings agencies acted on weak economic recovery prospects. Greece and Spain were downgraded a short time after markets began fretting over the future for debt-riddled Dubai and its state owned Dubai World.

Euro last week hit two-month lows against the Dollar, bottoming out at 1.4586. It has since consolidated in early Asian trading at 1.4637/8. The pair has been trading in a slim range since reaching its lows on Friday, and this will likely continue as investors look to the broader economies for cues.

EUR/USD trades range bound between 1.4597-1.4641, so far this session. For the technical analysis, we recommend this report.