Forex: EUR/USD plummeting on China (Barcelona) - The bloc currency is sharply depreciating against the US dollar after China has ruled out further stimulus to help its economy, dragging the cross back to the 1.2530 region.
At the same time, German 10-year bund yieldl is posting record lows around 1.347% as risk aversion is quickly gaining traction.

Adding to the selling pressure, ECB officials have discarded the idea of reactivating the SMP in order to allay rising yields, mainly in Spanish debt markets.

At the moment EUR/USD is down 0.02% at 1.2536, and a penetration of 1.2495 (low May 25) would expose 1.2483 (low Jul.2 2010) then 1.2398 (high Jun.28 2010) and 1.2386 (MA21d).
On the other hand, resistance levels are located at 1.2625 ahead of 1.2639 (MA10d) then 1.2690 (high May 23) and 1.2820 (high May 22).