The EURUSD has plunged, so far, 0.4 percent as negotiations between Athens and its creditors have stalled, raising concerns Greece will fail to unlock a €7.2 billion aid tranche needed to repay debts maturing this month.
Syriza has mentioned the labour reforms demanded by creditors include cuts in minimum wage and pension, which are considered “red lines” that cannot be crossed.
Meanwhile, there are speculations Greece would not seal an accord with its creditors before May 6, the time at while the ECB will will discuss emergency liquidity for Greek banks.
Worries over Greece bankruptcy and its potential euro-area exit has halted the euro’s rebound, where the euro climbed to a two-month highe after data showing the euro region was taking steps away from deflation.
The pair dropped for a second straight session on Monday after hitting a peak of 1.1288 on Friday on improvement in U.S. data.
The EURUSD is currently trading around 1.1147, after setting a low of 1.1134.
The euro recorded a gain of nearly 4.6 percent against the green currency as weak U.S. economic data raised expectations the Fed would delay its rate hike to 2016.
The euro faced resistance from the 23.6 percent Fibonacci level for the downside trend that began in May 2014.
The Stochastic Oscillator momentum indicator points to a possible downside correction, as the pair became overbought.
However, the EURUSD is still trading above this week’s Pivot Point depicted at 1.1103.
The main focus this week will be on the awaited U.S. non-farm payrolls data due on Friday, as it will provide the latest development in the labor market.