EUR/USD has fallen to 1.2160 as US equities slide heavily, adding to a risk averse environment. We triggered stops below the 1.2170 level and now have only 1.2111 support to lean on near term.
Commodities are sliding and bond yields are falling as contagion returns to the scene. Hungary is the prime suspect today but Spain remains in the bulls eye as well with spreads closing at record wides over German yields. Sellers are seen on rebounds to the 1.2225 area near-term.
EUR/JPY is being dragged down by risk aversion. Lower yields in US bonds are undercutting the USD/JPY leg while The EUR/USD leg is weighed down by European debt woes writ large.
