Trading Strategy:
In our opinion, we like a short EUR/USD strategy going into the ECB announcement (currently 1.3175) and would look to add to shorts on strength in the 1.3250/80 area. We would stop out on strength over 1.3350. Our initial take profit objective would be 1.2950, just above the base of the Ichimoku cloud at 1.2937 on Thursday. However, we see the potential for an even sharper decline in EUR/USD, which may see a daily close below the cloud, so we will remain flexible. We would lower our stop to 1.3200 if 1.3070 trades.