The euro had an uneven performance this past week, but the outcome that really mattered for the shared currency was the progress made against the US dollar.

Pessimism surrounding risk appetite trends keeps the dollar from a deeper correction.

The US dollar has already spent a significant portion of its premium in the reversal of the past two months.

Monday's release of the ISM manufacturing index will give a more complete picture of the sector and if early forecasts are any indication then we could see dollar support return on risk aversion.

The dollar's role as a safe haven currency holds the greatest influence over the direction and intensity of price action, but this underlying current itself is far from assured.

The greenback will almost certainly revert to its function as a safe haven currency should sentiment trends develop enough momentum.

A deeper upward correction is likely ahead before the long-term euro downtrend resumes.

Has fundamental reasoning broken down for the euro?

The dollar is losing its fundamental foothold, and growing increasingly dependent on sentiment trends for strength.

There was a clear skew in the euro’s performance across the majors this past week.