Forex traders are talking about yesterday's crazy action in the markets. Continued worries from Greece, led to a tremendous risk aversion rally as the dollar, yen, and gold surged higher. This move than triggered some sort of computer selling program to take effect, and then the markets really went berserk. In about 30 minutes, the USDJPY dropped nearly 500 pips from 93 to 88, the Dow Jones dropped about 1000 points at one point (the biggest intraday drop in the Dow Jones ever), and the USDCAD surged to 1.0750 from 1.0400. The market quickly reversed the move, but Forex traders and market regulators are still at a lost for what exactly caused the move.

Looking ahead, traders are awaiting full results from the UK Elections and the US Non Farm Payrolls. Specifically, the Non Farm Payrolls numbers could lead to some risk appetite returning to the markets if a better than expected number is released.

EURUSD

Blood in the streets of Athens has led to even more weakness in the Euro. As such, the EURUSD hit 14 month lows yesterday and hit lows of 1.2522. Also, losses were based on worries that Germany may back out of the EU/IMF bailout for Greece if Angela Markel's ruling coalition folds. As such, until traders believe that EU contagion won't occur, EURUSD weakness is expected to continue. On the long side, there is solid resistance at 1.2750 which could curb any upward movement.

Support/Resistance 1.2522/1.2750

GBPUSD

The UK's parliamentary election has wrapped up, but votes are still being counted. So far, it appears that the Conservative Party is headed to victory but will far short of securing a majority. This news and the overall risk aversion have caused the GBPUSD to remain much lower from yesterday's highs of near 1.5200. On the technical side, the pair has support at the 1.4700 figure which it has traded to three times over the last 12 hours.

Support/Resistance 1.4710/1.4950