Pre Requisite Reading: EUR/USD: The Rally Appears to be Over
Yesterday’s ECB officials’ statement accounted for the majority of the volatility in the pair, and even though EURUSD jumped above April 20th high, it did not take long before the entire move got sold off. Our short position remains in tact, despite the higher high.
What we would like to see now is a breach of April 14th low, which would increase the probability of our second target to be hit. For any short position initiated in these levels, stop loss should be placed in 1.137.