The plunge in the euro may be starting to look overstretched, but that's unlikely to stop traders from pushing the battered single currency even lower this week, analysts warned.
The euro briefly fell to a fresh 12-year low against the dollar Monday, at about $1.0457, before recovering a touch. Last week, the currency slid 3.2 percent -- its biggest weekly fall since 2011 -- as the European Central Bank embarked on a 1-trillion-euro quantitative easing program and talk of a rate rise by the U.S. Federal Reserve this year grew.
"The euro continues to track lower and while it continues to struggle above the $1.0600 level, the prospect of a move to parity remains very much a possibility," Michael Hewson, chief market analyst at CMC Markets, said in a note.
"The move lower continues to get more and more overextended, yet new lows continue to be hit every day."