The pair EUR/USD can strengthen on a back of strong reports
The pair EUR/USD was moving within a narrow range 1.1242 – 1.1282 in anticipation of today's news. Investors are waiting for the European data to understand how to proceed.
Today ZEW and IFO will publish German data. Then we will see data on business activity in the euro area. Given the fact that there are no new reasons to sell, since the ECB waits, the euro has a good growth potential.
The reports may be the good reasons for the pair EUR/USD to grow, if they come out stronger than expected. Therefore, we do not rule out attempts of the pair EUR/USD to test the resistance near 1.1340.
It is also worth to notice that this week will be short. Most of the markets will be closed on Friday on the eve of Catholic Easter.
How to trade
We assume that the pair EUR/USD is trading in the range of 1.1185 - 1.1280. We would purchase PUT options if the price falls below 1.1230. And we would buy CALLs if the price grows above 1.1270.
Expiry time: 21:00 GMT