EUR/USD breaks below 1.35 for the second time in 3 trading days. The last move (explained here) ended in 1.3490 and the pair is now below this level, at 1.3487. We often see an initial false break followed by the real thing. However, EUR/USD has been stubborn, especially when it is going down.
Geo-politics continue to dominate the headlines, with tensions mounting around Ukraine and the war in Gaza intensifying.
Update: the low level so far is 1.3480.
Support awaits at 1.3475, which was the low in February, and 1.34 is the next significant level.
Here is how it looks on the chart:
One of the reasons for the drop is comments from Pier Carlo Padoan, Italy’s Minister of Economy and Finance  that says that the economic trend is weakening in Europe.
Yesterday, Germany’s PPI came out below expectations, showing yet another sign of low inflation.
For more, see the EURUSD prediction.
