The EURUSD is up and down in the last hour of trading, but things in the EU debt markets are not getting better. The Spanish yield on 10 year bonds has moved above the highest closing level since May 1997 (currently trading at 6.72%). The yield spike caught the attention of the EURUSD buyers who immediately stopped themselves from their buying, and the subsequent reversal has moved the price back toward the NY lows. Nevertheless, the pair is still finding support buyers (so far) against 1.2477 which is bear flag support. Get through it, and look for further downside momentum.
The 1.24478 low for the day, followed by 1.2440 are the next targets for the pair.
PS Lest we not forget, the 200 hour MA is at 1.2480. This too should keep the pressure on the pair on a break.
