EURUSD 11/9/11

The Euro lost ground today, after consolidating for the last few days. Italian bond yields hit a record high. This raises worries for how bad the crisis in Europe really is. Also Italian debt exposure is much larger than Greek debt exposure. after all this turmoil in Europe, The Euro broke trough the support of 1.3650, and is now somewere around 1.3520. By now it lost 300 pips already today. By the looks of this it will probably continue to go down after a retrace to 1.650 resistance. We can watch for possible price action signals around that level and go short. The next support level is somewhere at 1.3200.