The market now trades within a range and is currently pulling back from a bearish trend since yesterday.
While we can’t be certain that EURUSD will eventually dip further, it’s a safe and reasonable bet to sell again as it approaches the top of the current range.
If we were to commit to selling and should the market does continue to take a bearish stance, the bears should appear before the price climbs beyond 1.1950.
By counting the number of waves of the current rebound from 1.1755, the price has the potential to develop another bullish wave and reach somewhere between 1.1860 and 1.1950.
The ECB press conference is just ahead and that will provide more clues as to how bearish the euro will get this week all the way till next week’s FOMC.
This plan should work as long as the ECB does not turn hawkish all of a sudden, which is very unlikely given the current economic condition in the eurozone.