EURUSD
After climbing for almost two sections (17 in ichimoku number theory), the Euro failed to continue gaining, telling us this recovery had little underpinning to it.  The Chikou not only found resistance at the price line (bearish), but also found resistance at an area where it once held as support.  It still has yet to clear the price line, which is one of the few majors failing to do so.  That plus the strong Kumo ahead, along with the tenkan and kijun going flat, and we are not giving much faith in this recovery.

We will look for a downward tenkan-kijun cross coming soon to attack the yearly lows, but if the pair muddles higher, we'll look to sell around the Span A of the Kumo which may line up with the recent swing highs at 1.2721-ish.  Bulls will have to wait till 1.2300 before getting back in , unless they want to get in for a short play off of 1.2445 which would be aggressive by our standards.

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Global Market Commentary:
Literally while writing this article, Moody's just cut the debt ratings of 28 Spanish banks by 1-4 notches. Besides this painting a picture we know all too well about Spain, the markets today were already under pressure as continued doubts about the Euro Summit this week being able to solve the EZ debt crisis. Ahh yes, politicians meeting over a summit usually solves major banking and sovereign crisis like these.

Regardless, Spanish and Italian yields rose while the Euro fell heavily against the USD, losing the 1.2500 handle in the process. Frau Merkel did not help by saying 'Nein' to issuing Euro Zone Bonds to underpin the economy.

The Dow slid 138pts or 1.09%.  The S&P shed 21pts or 1.6% while Gold gained heavily adding $18.30 to close at $1585 as precious metals took center stage being a risk off day.

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