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EUR/CHF – Hourly structure warns of an extension lower
EUR/CHF is developing a structure in the hourly timeframe which is currently suggestive of a sizeable extension lower. If a break can be realised under 1.2170 then stops under 1.2123/30 will become vulnerable. If these are triggered, there may be sufficient momentum to target the large cluster of stops that are expected under the 1.2000 region. Despite some reasonable auctions in Spanish governments bonds, the Italian 10 year sovereign yield remains elevated, with a re-test of the 7.000% level anticipated. A large tranche of rollover funding is expected in the new year and growth is also likely to contract in Italy. ... (full story)