Euro Weakness Resumes Three Sessions After the ECB Meeting

Although the immediate down-up whipsaw action in EUR/USD after last Thursday's ECB policy statement followed by the Draghi Press Conference looked as if all of the news already was discounted by the currency weakness during the prior month, not so any longer.

Did traders and investors actually think that EUR/USD could or would reverse to the upside in a major way that would embarrass the ECB and leave Draghi with egg on his face? No way that is going to happen.

So it is, that in the last two sessions, EUR/USD has plunged from 1.3670 to 1.3535 as it nears a test of last Thursday's low at 1.3500/05, which, if violated and sustained, should trigger downside continuation that breaks the Feb low at 1.3480, on the way to 1.3400-1.3380 next.

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