It’s been well documented that the ECB gave the EUR/USD an almighty hit yesterday. That said we now need to focus on the best plan to trade it. I think for the most part we have to be sellers. The momentum is just too strong at the moment.

With that in mind I am firmly focused on 1.1623.

Trading Plan

We have a few options for trading at this level. We can sell when we break below that support level. This is a good plan for a larger move lower. We can also wait for a test of 1.1623 and a possible bounce. Then we can sell the bounce.

I think in truth we can use both of these ideas. I would like to see a little bit of a pullback as I suspect we will bounce off this support level. However if USD GDP comes out strong we might just blast through it.

EUR/USD – 240 min Chart.