The euro is at a cross roads and the US dollar is a perfect fundamental and technical counterpart for the single currency. Risk trends, growth, interest rates and bailout efforts between these two economic superpowers will soon redefine the long-term trend of the currency market's most liquid currency pair.

With a concentrated shot of event risk, growing threats to the credit and financial markets, and the unusual trading conditions expected to come along with the holiday, the chances for a breakout are intensified.

The strength of the greenback has been all the more surprising given the dismal status of the US economy, but since the currency has managed to hold on to its status as a "safe haven" asset, fundamentals frankly do not matter at this juncture.

Wading through Paulson's assessment of the situation so far, the real meat of the official's statement came through his plans for ongoing priorities to help stabilize the markets and economy.

Fourth quarter GDP numbers may be months away, but data suggests a recession is already underway.

A year ago, many economists and traders believed the US financial crisis would stay within the boarders of the world’s largest economy and other countries would be immune to the economic consequences. However, today’s side-by-side Bank of England and European Central Bank rate decisions have certainly banished any lingering skepticism that Europe was feeling the pinch of a broad recession and ongoing difficulty in the financial and credit markets.

Now with the Fed Funds rate matching its lowest level since the Bretton Woods pact collapsed, we can see speculation beginning to take a hawkish turn through further months.

While liquidity fears have been quenched by unlimited access to dollar funds, sharp interest rate cuts and global bailout efforts, the markets have merely passed through one phase of a much broader financial crisis.

Volatility has cooled for nearly every asset class, but caution is still present.

The markets were prepared for the 50 basis point rate cut from the Federal Reserve today, but can further easing turn the dollar’s three-month and multi-thousand point trend?