The euro dropped below the psychological level of 1.4000 against the dollar on Wednesday, after its rally earlier in the day stalled at 1.4026.
EUR/USD hit 1.3995 during midday European trade. The pair was likely to find support at 1.3852, Monday's low, and resistance at 1.4194, last Monday's high.
The single European currency's decline against the greenback followed the release of disappointing data on retail sales in the euro zone.
Eurostat, the European Union's statistics office, said such sales had seen no monthly change in December, despite analysts' forecasts of a 0.4% increase.