EURUSD blown away

The EURUSD has crashed to 1.26 from 1.2794 at this point of writing (-1.44%) as this asian morning, Moody's Investor Service published a report to describe the danger of the exposure of western European banks to Eastern European countries.

The report detailed the how much some central & eastern european (CEE) and baltic countries have depended on western european banks' funds in their economic development in years past and that the economic crisis has caused these countries to implode in terms of their finance standing.

The CEE and Baltic economies may find it very hard to refinance their debt going forward, hence putting pressure on the european banks that financed them in the first place.

As a result, the western european banks are facing again, further writedowns and put under severe pressure for perhaps recapitalisation and even more government intervention.

EURUSD was sold off promptly, breaking below the resistance line in the small triangle formation - see chart below.

This means we're open to the way to last Nov low of 1.24.

Let's pray for Europe.