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After some consolidation, Euro USD resumed its falls in the wake of the New York session. More talk about a Greek exit from the euro, the necessary preparations and the state of the Hellenic Republic are all weighing on the common currency. Bad news from Spain also adds to the pain.

If this break is confirmed, the next support line is not too close. The pair dipped to 1.2495, but stayed under 1.25 only for a few seconds.

Update: After dipping below 1.25, the pair rebounded  strongly  and is not at 1.2524.

The Spanish region of Catalonia is reportedly in need for government help. The northeastern region is one of Spain’s richer and more industrialized regions, and usually contributes to other Spanish regions.

According to this report, Catalonia’s president, Artur Mas, has announced that the region needs help.

“Greece is a failed state” – says a co-CEO of Deutsche Bank. These stark words aren’t helpful. While most European officials still say that Greece’s place is in the euro-zone, talk about contingency plans, once taboo, is now open.

Below 1.25, the next level is 1.24. These levels were last seen nearly two years ago.

For more, see the EURUSD forecast.