Good afternoon, dear traders! Let's take a look at the trading idea for the euro/dollar pair.
Today is a really important day for the euro/dollar pair as the ECB will announce its decision on the key interest rate and Christine Lagarde will provide a speech at the press conference.
These two events will take place in different time.
That is why there could be two impulses. If the ECB remains the key rate unchanged (as most analyst expect), a surge in volatility is likely to take place amid the press conference that will take place during the American session.
In general, the trading instrument may continue losing in value. The zone of profitable sell positions is located above the level of 1.2.
In fact, we have 3-wave structure "ABC". The A wave is presented by a short initiate that occurred at the end of February-at the beginning of March.
Short positions could be opened after a rebound from the 50% Fibonacci level located at 1.201. To limit risks, place a Stop Loss order at 1.21500. Traders may take profit after a break of such levels as 1.18300 and 1.16000.
This trading idea is based on such strategies as "Price Action" and "Stop Hunting".
Good luck and manage risks!