Usually, I don’t ever really touch this currency pair for my “Pick of the Day” because it’s Big Pippin’s thing, but how could I pass up a trade on it with an ECB interest rate decision tomorrow morning! Now all the markets pundits are saying that a 25 basis point rate hike is “guaranteed,” while a few are looking for a possible 50 basis point rate hike. We won’t know for sure until tomorrow, but what I do know is that market sentiment is exceptionally net long the euro. It looks like traders are in position or poised for a strong upside move. So, in today’s pick we hope for a strong move to the upside, but we will take quick profits to counter any large profit taking we may see shortly after the release. Also, we’ll have a tight stop, just in case there is a surprise to the downside. Here’s the trade:
Long EUR/USD at 1.2850, stop at 1.2820, pt1 at 1.2870, pt2 at 1.2900
Good luck and good trading!