This morning the Euro spiked up and then rapidly reverse and then plunged. That would be a surprise if we were very bullish on the Euro already. I have been bearish on the Euro for sometime already so this dip is no real surprise. To confirm that the Euro rally was just another fake, it would have to retrace the entire May bottom. We see bear market rallies all the time at the smaller degree levels, but happens at a smaller scale, also happens on the bigger degree scales.
The US dollar also reacted, so it’s not an isolated Euro event. I doubt that Italy has enough clout to bring the Euro down, but the analysts are determined to give you a reason for the decline if it’s right or not! The world would end if analysts down find you a reason for every little price move in any direction. I won’t be satisfied until that May 29th low is completely retraced.