Yesterday’s chart of the day showed what could happen if the Euro were able to breakout of the range that had been constraining it to the upside. Today’s chart shows what is reality: that the range indeed did hold and in fact we have broken out– to the downside!
Concerns in Italy have made today a major risk aversion play, as bond yields are soaring there over uncertainty of a potential new government. What is going to happen there is anyone’s guess, but the good news for Euro bulls is that there may be some support at 1.35.
Otherwise, it ain’t pretty!