The run on the Euro continues as governments fail to agree on a coordinated strategy for the market meltdown.  Ireland led the way, offering 100% guarantees to all bank depositors and German followed this weekend.  Ironic given the German led ECB was still warning about moral hazard a couple of weeks ago.  Events now move so fast that even the leading players have little or no idea of what is going on.  This is now being reflected in sentiment towards the euro.  The first sign of trouble its everyman (or country) for itself!  This has also coincided with a massive repatriation of US dollars and a flood of money into safe haven Treasuries.

Currency trades to look at are further shorting of the Euro-vs-Dollar – we could even see fall down to 1.33 before any reversal.

Dramatic falls for the euro against the Yen also shows no immediate sign of stopping.  Given the degree of fall look to a quick countertrend trade and only sell on upbars.