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.