FX.co ★ Fundamental Analysis, for September 26, 2012

The dollar continued its recovery on all fronts, especially against the European currencies. The euro is far from the highs reached a few days ago amid euphoria about the announcements made by the European Central Bank, which now seem to be forgotten.
However, Draghi said in Berlin on Tuesday that the measures announced require additional policy decisions, which the governments of the countries in trouble have refused to take.
And they were quite right. In Madrid, there was a strong social protest on Tuesday night, while in Greece on Wednesday a general strike paralyzed the country’s main activities.
The effects of the tax adjustment in these countries, in addition to Italy, for now, are felt to a lesser extent and everything suggests that a ransom they ask for from their governments and that is accepted by the ECB will only worsen such conditions.
The euro is influenced by these concerns and falls rapidly despite occasional corrections that observed for minutes. In its turn, the sterling also lost some of the positions, forming technically, in the short-term, a turnaround Head and Shoulders figure which could lead to a sharp decrease during the course of the week.
The yen, meanwhile, is strengthened, though it seems to slow its momentum right now, and the improvement in cross USD / JPY from 78.05 could generate a more sustainable upward move for the rest of the day.
Meanwhile, the Dow Jones index futures seem to not anticipate a positive day for the leading roles. Another turnaround figure Triple Top in this case signifies about the impact of the taken earlier measures, and seems to be inevitable.
If this happens, the European currencies, as well as the Australian dollar and the Canadian dollar, which are now very weak, could extend their losses as their previous lows were not so strong and the price curves have not entered depletion zones.
As for the daily data, the crucial report on new home sales is expected at 10:00 U.S. Eastern, while oil inventory will be published at 10:30.