Following the events in Europe earlier this week, Italian yields responded in a strongly bearish manner, ending a downtrend in yields that had been in place for seven months. While that trend has just turned, EUR/USD has steadily been posting bearish patterns on daily candlestick charts through the course of this month. We are now patiently awaiting a close below 1.3000 to signal that the downtrend can extend further in the coming weeks. One such early warning could come from the CAC 40, which is threatening well-defined support and also risking completion of a topping pattern.
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Barclays