Morning Analysis

The Euro has broken its channel, and this is a good reason to sell it again.  Oddly, the ECB gave Euro bulls everything they wanted to hear in this morning's press conference.  Trichet signaled that the ECB will raise rates at the July meeting, and there is news that Greece is getting a 120B Euro bailout package.  The response was immediately positive, and then immediately reversed.  What do you expect though, that market has been irrational for about three weeks now.

I am looking for minor support off of 1.45 to sell Euros from.

EUR/USD Hourly

Stocks are in another small rally.  I'm looking for the S&P to test a confluence of support levels at 1250 before we see a meaningful bounce.

S&P 500 Index Daily

With both stocks and the dollar rallying today, the gap is starting to converge, although for now that means that this new direct correlation is working in both directions.  Just something to keep an eye on.

S&P 500 Index vs. EUR/USD