There’s no doubt that June 5 ‘s ECB meeting is the big event of the week. In that vein, I’ve thought it worthwhile to toss up a few charts today that provide options on how to play the ECB decision whether you’re looking to get long or short. Here’s another. After the earlier Aussie chart with the most perfectly formed H&S pattern I went on the hunt. Here’s what I found. EUR/CAD just completed one. A bit messier, but still fairly cut and dry. With recent Loonie strength and potentially pending Euro weakness it looks like EUR/CAD has at least a handle to the downside.
What’s appealing here is the versatility of options for traders. If you think the Euro is going to get weaker, this pair has room. If you think we’re in for a bout of “sell the rumor, buy the fact” before the market moves past the “what will they do?!” mania it is currently gripped in, then you wait for a better spot to get short – 1.500-, maybe.
And if you’re the unicorn who thinks the Euro is about to regain its strength in the near term, then you’ve got an entry point with 200 pips to the upside and a reasonable stop 100 pips to the bottom.
Something for everyone.
