10Y German Bund ag. 10Y Spanish Bond - The two graphs above show the yield on the German 10Y Bund and the 10Y Spanish Bond and the lower chart the spread between the two.
As can be seen on the upper chart the 10Y yield on the Spanish Bond is rising again, while the yield on the 10Y Bund is falling. Focusing on the Spanish yield a break above resistance at 6.90% will trigger a rally towards the next resistance at 8.08.
Looking at the lower chart the spread between the two has now risen to new all time highs since the EURO was born. That is not good news for Spain and it's not good news for the EU. The EU will not be able to bail out Spain!
EUR/USD - Continues to decline towards the important support near 1.2625. I still miss real wave 3 price-action, but it should show up fairly soon. There is a possibility that we "just" sees a decline to 1.2842 from where a correction up towards the 1.3011 - 1.3063 area is see, before real downside pressure takes over, but we will let time show.
USD/JPY - Is still looked in the corrective down-channel. I expect resistance i the 80.30 - 80.45 area to protect the upside for a break below 79.86 to confirm the next downside pressure towards the ideal target-area between 78.33 - 78.85.
GBP/USD - As is the case with EUR/USD we still lack some real evidence that wave 3 down is in motion. I'm waiting and looking for support at 1.6050 to be broken (close below) to get things going towards the downside. The is a risk that the correction that began at 1.6067 is not over yet and we need one last rally towards the 1.6198 - 1.6212 area before the downside pressure really builds.
Say something about the crosses EUR/JPY and CHF/JPY thanks in advance:)
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