The euro is under pressure because of the Deutsche Bank

Last week the focus of market participants was on Deutsche Bank (DE: DBKGn), the largest bank in Germany. Worries around the Institution triggered a wave of demand of risk-free assets, and is also reflected on the behavior of a single currency. EUR/USD on Friday registered 9-day low, jeopardizing the integrity of the 1.1150 zone.
Let me remind, that the US Department of Justice require form the German giant to pay $14 billion for the latest embezzlement. But that is not all. Hedge funds massively began to refuse services of Deutsche Bank for clearing. And it threatens a large-scale withdrawal of funds from the bank. And in June, the IMF warned of the risks posed by the institute. Since the beginning of the year the bank's shares fell more than 50%, but on Friday have fallen by whole 8%.

In the light of the circumstances, the talks, that Deutsche may repeat the fate of the infamous LehmanBrothers increase. Some market participants at this stage believe, that without timely support from the authorities, the bank is threatened with bankruptcy. Last week, the German government has denied the rumors about the imminent aid package to the bank. If in the near future the authorities do not soften their position and not serve markets a message of hope, the sale of the stock markets in Europe will continue, because the frightened customers will continue to actively withdraw funds from Deutsche.
Under unfavorable scenario, the euro could come under more pressure, and in the medium term, the tactics of sell EUR/USD on growth can affirm. While quotes continue to "cling" at the level of 1.12, the bearish momentum seems limited. In the case of testing and steady breakdown of the level 1.1150,the forecast for the pair will worsen.