[J. Abizeid]

Originally Posted by admiral

Yesterday night at around after midnight the Euro was pushing up and it even reached 1.3006 , at noon today it reached 1.25 , i have never witnessed in my life such a move of 500 pips in a 12 hours period , and i am sure it never happened before .

This is a free fall and it seems there is no traders who are willing to bet on going long on the Euro right now "they dont want to catch a falling knife"

Technically speaking , if the euro falls below 1.25 , the next resistance is the 50% retracement from all time high at 1.60 to its all time low at 0.822 , which is around 1.215 , i expect a heavy battle at this area . On the upside the 1.30 is still the level to break to show a sign of life for the euro.

USD/ Yen even fell more than the EURO , from 98.08 to 90.90 , which is around 10% , which is also a record fall for a one day period .

Some people are bewildered that how come the USD is strengthening against the euro , while falling against the yen :
what is happening right now is that market is balancing itself , south east currencies were in the past few years held artificially to weak levels against the USD by the Far east central banks to boost their export market , if you remember the japanese central bank always interfered in the past to keep the yen above 100 yen ,in the past few weeks the central banks in the far east didnt interfere in the market and what we are witnessing today is the market balancing itself.

I believe the lesson learned from this financial crisis is that anything that is artificial and against the basics of the financial system is due to be doomed within a certain period of time .

Something big is happening that seems to be interconnected between the universal stock market, gold and the currency,
The Nikkei as been collapsing last two days while the Yen is skyrocketing,
The DOW is also doing the same while the dollar is skyrocketing.
Why is the euro going down while the European market is going down?
They want you to forget the dollar is fiat money as well

The amazing thing this is that gold is going down while the US stock is going down and the dollar is up. It suggests a demand on the dollar not only from the fed reserve borrowing it but, from someone selling lots of gold. It happened before in the seventies when oil was brought down to $12 the barrel. The Saudis had to subsidize their lost revenue by selling their gold. As soon as they ran out of gold, oil was allowed to go up again, and gold started doubling in prices while the dollar tumbled.
History is repeating itself.
There are also rumors that suggest the fed reserves are selling their own gold to finance their debt which will eventually turn into a disaster for the dollar and its followers.
I see history repeating itself. The Saudis don’t have much of a choice and the Republican Administration is stealing their silverware before they leave the dining table.
What we are witnessing now is not much different than the Enron scandal.
Those who are betting on the dollar keeping its value up on the expense of low oil and gas prices might be very disappointed.
The oil cut today is a staged setup for the next wave of oil hikes.

Having said that, your charts seem to be working impressively; I guess they’ll do the same good job when the market reverse its trend.