Euro breaks $1.30

This is the big news this morning, shortly after an Italian 5 year auction that came in at a euro-era record high of 6.47% yield, the Euro broke the heavily defended $1.30 level rallied to test it and failed. It is heavily defended by a swarm of options contracts so the break below is very significant, especially for Equities that remain severely dislocated from the Euro/dollar FX market.

Watch this level on the Euro, it could lead to a waterfall sell off if the longs think they can't defend it, taking equities down with it.