EUR/USD is resuming its sharp reversal from key overhead resistance (primarily an important 2 year trend-line and its 200-day average). The bearish move is now being further anchored down by heightened European sovereign debt risk leads to greater contagion. Expect downside scope into 1.3146 (Oct swing low) and psychological level at 1.3000, then 1.2870 (2011 major low). Further pressure may also weigh from broad risk-related proxies. The euro continues to share a high correlation with the S&P500 and AUD/USD. Inversely, the USD Index is holding above its long-term 200-day MA. The bulls are likely to recapture the ... (full story)