EUR/USD: Cheap trade with stop below 1.1750
Today’s European Court of Justice (ECJ) opinion will have crucial implications for government bond purchases by the ECB and naturally will impact on EUR sentiment. With positioning at close-to-extreme levels, it might be a day for the contrarians?
Two ways to play this I guess, buy here at 1.1770 with a very tight stop below 1.1750 (where it looks like there is option activity). Or wait and see if the presumed stops below 1.1750 get triggered in typical early-Asian-market fashion and then buy into the exhaustive dip. I haven’t really been trading EUR/USD recently so no strong view.