EURUSD Rallies, Risk Trends Retreat - Which is Correct?

Volatility took a notable jump in the capital and FX markets this past trading session. For EURUSD, headlines that suggested Germany was warming to more liberal accommodations for Greece's rescue drove the pair to its biggest rally in over two weeks and a break of a three-month bearish trendline. Yet, in fundamental contrast, both the S&P 500 and AUDUSD put in for aggressive intraday bearish reversals and declines. With EURUSD eyeing 1.2500 and AUDUSD threatening to finally break its channel, which will follow through and which will correct? Perhaps the more critical question is whether these are market conditions that can support a new trend - whether risk or Euro-area health related...