The dollar strengthened on all fronts at a rapid pace now against the European currencies.
The dollar strength is felt especially against the euro which is involved into the financial meltdown in Europe and could not assert itself over 1.23 in the last evening.
Thus, the euro is heading towards its lowest reading in 2 years, which is 1.2161 for the moment. Technically, the daily chart below provides a picture of bearish inverted flag whose goal is at the 1.2125 area.
The British pound remains slightly firmer despite downside movement it also does not lose its upward trend in 4 hours charts. Overcoming of the 1.57 might even give you a new bullish, yet it depends on the progress of the overall market.
The situation is different within the Australian dollar and the Canadian dollar. The Aussie managed to arrive in the last hours to 1.0442 from 1 May. The downward correction shown now could become a figure of below trend, and find the area of ​​1.05 during the American session.
In the case of the Loonie, the strength of oil in recent days has given a new bullish move, and is close to parity against the dollar. This possibility would be altered to break 1.0110 where it spends a trend line in the short term charts, and whose breakdown will change the direction of the crossing.

As for Europe, the problems of the high costs of Spain debt, the mess generated by leaders of the troubled countries together with their statements, releases, gossips and comments only managed to blur the image and what is worse, they added more pessimism and distrust in the future. The euro, one of the most powerful currencies until now, wanders in the direction of bassist and without conviction as a result of this situation.

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