Coming as no surprises downgrades are afoot in Europe. Credit ratings of various European countries are being downgraded. This has been coming for quite some time, it's in no way surprising.
Interestingly enough, rather than cutting spending, we are seeing more options for printing and tax increases happening in Europe.
The Euro continues to fall against the US Dollar probably largely due to market sentiment. When it comes down to it, I'm not sure how any investor can tell the difference between the Dollar and the Euro, both central banks seem to be interested in printing rather than solving the actual problems that led to this mess.
Adding to that that SHORT EUR/USD is a rather crowded trade. Are you shorting the Euro, or do you see a chance for redemption coming soon?