Skepticism about the Eurozone being able to get out the debt crisis is on the rise. Many investors are starting to sell their long-term position of the Euro for the U.S Dollar. Although, the U.S Dollar may not be the ‘go-to’ currency for all, it does look more stable than the Euro at this time. On Friday, the EUR/USD dropped to the 1.3626 low … a drop of 250+ pips in one day.

EUR/USD took out 1.3968 major support line last week and hit the 1.3836 low. Intraday bias remains on the downside, as long as the 1.4280 minor resistance line is not broken. On the downside, if the 1.3836 low is broken it will continue the bearish momentum and target the 1.3750 major support line.

US equity markets have continued to make higher weekly closing highs, climbing relentlessly in defiance of calls for a pullback or a resumption of the bear market. Treasuries broke down from a month long consolidation and resumed their downtrend as capital continued to exit the perceived safety of fixed income for risk assets.