13, March 2013

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

Hungary has challenged the European Union by changing the constitution to limit the powers of the constitutional court, one of the few institutions that stood to Viktor Orban, Prime Minister.

The Parliament where Orban's party dominates voted for a set of constitutional amendments supported by the government, despite warnings from the European Union, the U.S. government and a group of human rights that the changes could undermine democracy in Hungary.

At the same time not very good news comes from Italy. Italian government bonds were traded worse than others after Fitch reduced Italian credit rating.

Some analysts say the European Central Bank has not checked yet how the program of bond purchase will protect them from the sale while others say that the political deadlock may eventually bring to the fore again the eurozone crisis.

Trading takes place in a very large downward price channel, the lower limit of which is a minimum of 6 March - and a minimum of 1.2964 last Friday - 1.2954. The upper boundary of the channel is located near the peak of March 8 - 1.3133.