EUR/USD drops below $1.36
It has taken almost a week but last night EUR/USD finally fell through the $1.36 level again, having briefly spiked below it during Mario Draghi’s speech on 5 June. The initial suspicion was that the ‘bazooka strategy’ of announcing a range of tools to tackle eurozone inflation and strength of the euro would trigger a collapse in EUR/USD; that was short-lived, whoever. Last night and today have seen fresh selling in EUR/USD, which has once again dropped below $1.36. The two next levels of support that could offer a platform to bounce off are last week’s intra-day low of $1.3505 or the February lows of $1.3477. Market observers are more likely to get an accurate assessment of how successful the ECB’s actions have been by watching euro strength than watching equity indices.