Yesterday’s session on EUR/CHF began with the continuation of earlier rallies, but quite quickly there was quite a significant supply reaction. Looking from the technical side, we have a test of the upper edge of the bearish channel on the daily chart. The growth wave has just reached the range of the previous upward movement and is testing the level of lows from February and June. The technique itself would indicate an opportunity for greater activity on the supply side and initiation of a new bearish movement or even a larger correction of recent increases. Fundamentally, the Euro may still be weakened by the Italian issue. It seems that the government of this country will not be willing to make concessions regarding the budget. If an increasing number of critical statements begin to appear, the market can start to live, selling the European currency. On Friday, Italy’s rating was lowered by one of the agencies. We will see how the quotations will go, the graph shows that we are in a place where sellers can be more active.
