EUR/USD Is Back In Descending Channel, GLD/SPY Testing Freedom Level

Is the Eurozone about to flare up again? Or is this about the U.S. debt ceiling. Yesterday, Greece was downgraded by S&P to 'CC' from 'CCC' on the belief that a "selective default" is likely to occur with a "30%-50% recovery of principal" (link). EUR/USD is currently trading at 1.43513, just above the 50 day moving average (1.43445). It sold off hard today along with other "risk assets". E-mini Dow, Nasdaq and S&P futures are slightly positive overnight, we'll see what happens tomorrow with stocks and the GLD/SPY ratio. The ceiling resistance level to break on GLD/SPY is 1.2065, or the high made in June 2010. Today GLD/SPY pierced through that level and hit a high of 1.215, but ultimately closed at 1.204. There could be some wild swings as August 2 approaches on Tuesday.

EUR/USD (Euro / US Dollar)
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GLD/SPY Ratio: Freedom = >1.21 (imo)
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For near and long-term GLD/SPY trend lines to watch, visit my previous post on 7/18/2011: Watching GLD/SPY Ratio, Down 16% From March 2009 S&P Low.