We expect rollback of the pair EUR/USD in the first half of the day and then recovery above 1.14
Yesterday the pair EUR/USD was able to overcome the level of 1.14 after the publication of the last Fed meeting minutes. The US FOMC Minutes showed fragmentation of the Committee in relation to the monetary policy rate but reiterated concerns about the consequences of the "cooling" of the Chinese economy.
Despite the fact that the FOMC minutes has helped the pair to increase from the day's lows, it is possible that today the pair EUR/USD will receive new pressure in connection with the expectations from the publication of the last meeting of the ECB's report.
If you remember, at the March meeting the European regulator has presented an ambitious program of further economic stimulus. Perhaps protocol will explain all the reasons for such action more in detail.
Thus, in the first half of the day the movement of the pair EUR/USD to the level of 1.13 may look quite logical. However, be careful with the publication. We do not recommend buy options before the publication as sudden movements in both directions aren’t ruled out.
However, the pair EUR/USD has a good potential for the resumption of movement up, so we recommend to look for entry points at 1.14 and then near 1.1480.
How to trade
We would buy CALL options after the return of the pair EUR/USD to the mark of 1.14.
Target price: 1.14
Close price: 1.1371
Expiry time: 20:00 GMT