Shortly after former US Secretary of State Hillary Clinton warned that a default on debt obligations could lead to a global financial collapse, the US House of Representatives passed a bill to increase the government debt limit by $1.5 trillion.

Earlier, Clinton said that if the Congress continues to be passive with the possible default, the calls for ousting dollar as the world's reserve currency will be much louder. In fact, the currency is already losing power in global circulation, and the presidential administration is fully aware of that. Of course, there is no reason to panic, but the latest data shows that there is a lot to think about because a debt default could certainly trigger a global financial meltdown.

Bloomberg Intelligence recently reported that China's yuan has seen a massive rise in its share in international payments, jumping from near zero in 2010 to a record 48% at the end of the month. Meanwhile, dollar's share fell from 83% to 47% over the same period.

In terms of the forex market, euro bulls have a chance to continue a rally and update the highs. But in order to do so, the quote has to stay above 1.1030 and take control of 1.1065. This will allow a rise beyond 1.1095 and towards 1.1130. In case of a decline around 1.1030, the pair will fall further to 1.0990 and 1.0960.

Pound bulls also continue to have control over the market. However, the quote has to consolidate above 1.2490 in order to trigger a much larger rise to 1.2520 and 1.2545. In case there is a decline, bears will attempt to take 1.2455, which could lead to a fall to 1.2420 and 1.2380.