Countdown Starts for ECB Rate – 3 Trade Setups in the Market
Arslan Butt • 1 min read
Good afternoon, traders. The Asian & European sessions remained bit lite from a trading point of view. Yet, the team FX Leaders managed to capture a couple of good trades. Well now the time has come, and the traders are sitting tight to ride the volatility spread by ECB.
3 Trades In The U.S. Session
EUR/CHF – The cross currency pair has reached right above the triple bottom support zone of 1.1685. On ECB rate decision, we may see a
potential breakout of this level. The bearish breakout will drive the pair towards next target level of 1.1675 and 1.1650. Whereas on the upper side, the EUR/CHF has a potential to go after 1.1735.
EUR/GBP – Likewise, the EUR/GBP appears to hold above 0.8700. The bearish breakout can drive the currency towards 0.8655. While above 0.8735 looks like a good level to stay bearish.
EUR/USD – The single currency is trading Euro at $1.2406 against the Greenback. Let’s say if the ECB surprises the market with the interest rate hike, which is really not expected, we will see massive spikes until $1.2745 and even higher than this level.
Since I’m not expecting them to hike the rate and it seems like the hawkish ECB is already price in the market. So, we can see a bearish reversal in the EUR/USD. If this happens, the break below 1.2385 will push the pair deeper towards $1.2330. Good luck and trade with care!