Panic selling is the name of the game since early week opening, with dollar and yen taking the lead across the board. Both save haven currencies are strongly up against the Euro, as Spain and Greece take center stage:  Spain yields soar to euro area record highs as more regions claim for bailout. In the meantime, PM Samaras claimed yesterday Greece is suffering a great depression: market talks about no more founding for the country are reviving fears of a Greek exit. Stocks are on free fall across the world, while commodities are under pressure also, favoring more dollar gains. The EUR/USD 4 hours chart shows a strong bearish tone despite indicators are in oversold territory, with the pair capped by 1.2133 today’s high. Seems pretty unlikely now, but a recovery above that level, may trigger some short covering towards 1.2160, where the pair will fill the weekly opening gap, and later towards the 1.2200/20 price zone.

With a daily low at 1.2082, a break below this area should lead to further slides with next short term supports at 1.2040 and 1.1990 area.


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